If the Equilibrium Exchange Rate Between U

question 2

Multiple Choice

If the equilibrium exchange rate between U.S.dollars and Japanese yen is $0.01 = 1 yen,but currently the exchange rate is $0.009 = 1 yen,then with flexible exchange rates the dollar price of a yen will __________ and the yen will __________.

• A) increase; appreciate
• B) decrease; appreciate
• C) increase; depreciate
• D) decrease; depreciate

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Definitions:

Deviance

Behaviors or actions that violate societal norms or expectations, often resulting in negative social reactions.

Irreparable

Impossible to repair, fix, or make right; typically used to describe damage or harm that is permanent or beyond restoration.

Aggravated Assault

An enhanced form of assault involving factors that raise the crime's severity, such as the use of a deadly weapon or intent to do serious harm.

Felony

A serious crime, usually punishable by imprisonment for more than one year or by death.