During the 1980s, the Japanese Yen Appreciated Against the U

question 79

Multiple Choice

During the 1980s, the Japanese Yen appreciated against the U.S.Dollar.As a result of this, the Japanese products became less price competitive in the U.S.This is an example of:

• A)contractual risk.
• B)non-contractual risk.
• C)exchange rate risk.
• D)forward premium.

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Definitions:

Business Cycle

The fluctuating levels of economic activity over time, including periods of expansion, peak, recession, trough, and recovery.

Recessionary Gap

A situation in an economy where the actual output is less than the potential output, indicating underutilized resources and unemployment.

Raise G

This term is ambiguous without context, but it could refer to increasing government spending or investment in certain contexts.

Social Security Tax

A tax paid equally by employee and employer, based on employee’s wages. Most proceeds are used to pay Social Security retirement and Medicare benefits.