Given Floating Exchange Rates,if Japan Increases Its Demand for Canadian

question 143

Multiple Choice

Given floating exchange rates,if Japan increases its demand for Canadian goods at the same time that Canada increases its demand for Japanese goods,then we would expect the yen's exchange value to:

• A) Appreciate against the dollar
• B) Depreciate against the dollar
• C) Remain constant against the dollar
• D) Appreciate,depreciate,or remain constant against the dollar

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