An Excess Demand for Dollars in Exchange for Yen Will

question 128

Multiple Choice

An excess demand for dollars in exchange for yen will cause:

• A)no change in the exchange rate of the yen to the dollar.
• B)the dollar to appreciate relative to the yen.
• C)the yen to appreciate against all major currencies.
• D)the dollar to decline in value relative to the yen.

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Definitions:

Textile Mills

Factories involved in the production of fabrics from various raw materials.

Old Southwest

The southwestern territories of the United States during the 19th century, before the expansion further west, often referring to areas like Alabama, Mississippi, and parts of Louisiana.

State Governments

The individual governing bodies of each of the fifty states in the United States, each with its own constitution and government apart from the federal government.

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Relating to a system of government where power is vested in the people, who rule either directly or through freely elected representatives.