Suppose the Dollar-Yen Foreign Exchange Rate Changes from 140 Yen

question 68

Multiple Choice

Suppose the dollar-yen foreign exchange rate changes from 140 yen per dollar to 130 yen per dollar. Then the yen has

• A)depreciated against the dollar, and the dollar has appreciated against the yen.
• B)depreciated against the dollar, and the dollar has depreciated against the yen.
• C)appreciated against the dollar, and the dollar has appreciated against the yen.
• D)appreciated against the dollar, and the dollar has depreciated against the yen.
• E)neither appreciated nor depreciated, but the dollar has depreciated against the yen.

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