In the Dollar-Yen Foreign Exchange Market, If Japanese Companies Sharply

question 205

Multiple Choice

In the dollar-yen foreign exchange market, if Japanese companies sharply increase their importation of U.S. products, then the

• A) supply of yen will decrease and the yen will appreciate.
• B) supply of yen will increase and the yen will depreciate.
• C) demand for yen will increase and the yen will appreciate.
• D) demand yen will decrease and the yen will depreciate.

---

Definitions:

Dependent Variable

The outcome variable in an experiment or study whose changes are dependent on manipulations made to the independent variable(s).

Type II Error

The error that occurs when a statistical test fails to reject a false null hypothesis—essentially, a false negative.

Null Hypothesis

A hypothesis that suggests there is no significant difference or relationship between specified groups or variables, serving as a default position until evidence suggests otherwise.

Sampling Error

The error that occurs due to selecting a sample instead of conducting a census of the entire population, leading to discrepancies between the sample and population parameters.