If the Dollar Appreciates Relative to the Yen, It Can

question 52

Multiple Choice

If the dollar appreciates relative to the Yen, it can be said that

• A) Japanese citizens respect the United States more.
• B) the dollar increases in value within the United States.
• C) the Yen depreciates relative to the dollar.
• D) it takes more dollars to buy Yen.

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Definitions:

Incremental Cash Flow

The additional cash flow from a company's activities or projects, specifically distinguishing between the cash flows with and without the project.

Taxes

Compulsory financial charges or levies imposed by a government on individuals and organizations to fund public expenditures.

Erosion

The portion of cash flows of a new project that come at the expense of a firm’s existing operations.

Incremental

Refers to the additional changes in costs or revenues that result from a business decision.