If the Exchange Rate Between the Yen and the Dollar

question 194

Multiple Choice

If the exchange rate between the yen and the dollar changes from 110 yen = $1 to 100 yen = $1, then:

• A) the dollar has depreciated in value.
• B) U.S.-made goods will become more expensive to Japanese citizens.
• C) the dollar has appreciated in value.
• D) Japanese-made goods will become less expensive to U.S. citizens.
• E) there will be a decrease in the demand for dollars in the foreign exchange market.

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