If the Exchange Rate Between the Yen and the Dollar

question 97

Multiple Choice

If the exchange rate between the yen and the dollar changes from 100 yen = $1 to 110 yen = $1, then:

• A) the dollar has depreciated in value.
• B) U.S.-made goods will become less expensive to Japanese citizens.
• C) the dollar has appreciated in value.
• D) Japanese-made goods will become more expensive to U.S. citizens.

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Definitions:

Administrative Expenses

Overhead costs related to the general operation of a company, such as salaries of executive personnel, office supplies, and utilities.

Planning Budget

A budget designed for a specific level of activity, used for planning and control purposes.

Medical Supplies

Items and materials used in healthcare settings, including syringes, bandages, gloves, and medicines.

Flexible Budget

An adaptable budget that shifts in response to changes in the amount of activity or volume.