Suppose US

question 20

Multiple Choice

Suppose U.S.-produced wheat costs $5 per bushel and the exchange rate is 100 yen = $1. If the exchange rate changes to 90 yen = $1, the

• A) wheat would now cost more dollars.
• B) wheat would now cost the Japanese citizen less yen.
• C) wheat would now cost less dollars.
• D) wheat would now cost the Japanese citizen more yen.
• E) yen has depreciated in value.

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Definitions:

Binding

In legal terms, describing an agreement or contract that is legally enforceable by law.

Theory Z

A management philosophy that stresses employee participation in all aspects of company decision making.