In the Dollar-Yen Floating Exchange Rate Relationship, Dollar Demand Includes

question 28

Multiple Choice

In the dollar-yen floating exchange rate relationship, dollar demand includes:

• A) Dollar to yen conversions
• B) Japanese exports to the US
• C) Japanese investments in the US
• D) US tourists going to Japan

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount received by them when the good is sold at the market price.

Comparative Advantage

The capacity of a person or collective to conduct a specific economic operation more effectively compared to another.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.