If Inflation in the United States Is Higher Than in Japan,what

question 131

Multiple Choice

If inflation in the United States is higher than in Japan,what will happen to the exchange rate between the U.S.dollar and the Japanese yen?

• A)The dollar and yen will both depreciate.
• B)The dollar and yen will both appreciate.
• C)The dollar will depreciate and the yen will appreciate.
• D)The dollar will appreciate and the yen will depreciate.

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Definitions:

Political Freedom

The degree to which individuals are able to participate in the political life of their society without repression.

Evade Taxation

The illegal practice of avoiding the payment of taxes owed by using deceitful or unlawful means.

Competitive Pressures

Forces or factors in the external environment that compel organizations to adapt, innovate, and continually improve to maintain or enhance their market position.

Operations Expenses

Operations expenses refer to the costs associated with the day-to-day activities of maintaining a business, including manufacturing, marketing, and administrative expenses.