Suppose That the Exchange Value of the Dollar Currently Equals

question 132

Multiple Choice

Suppose that the exchange value of the dollar currently equals one hundred yen.As a result of changing economic conditions, suppose that people anticipate that the dollar will be worth 120 yen in three months.This expectation results in

• A) an increase in the value of U.S. exports to Japan.
• B) an increase in the demand for the yen.
• C) a decrease in the demand for dollars.
• D) an increase in the demand for dollars.

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