-Refer to Figure 17-1

question 138

Multiple Choice

-Refer to Figure 17-1.Assume the equilibrium exchange rate is $0.008 per yen at point A.If U.S.consumers decide to purchase more automobiles from Japan,then

• A) nothing will happen
• B) the supply curve will shift to S' and the demand curve will shift to D'
• C) the supply curve will shift to S'
• D) the exchange will rise to $0.012 per yen
• E) exchange rate will return to $0.008 as soon as the market adjusts.

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