Suppose That a Computer Memory Chip Costs 600 Yen in Japan

question 74

Multiple Choice

Suppose that a computer memory chip costs 600 yen in Japan and $3 in the United States and that the exchange rate was 250 yen/$.In this situation traders would ________ increasing the ________ and causing the dollar to ________.

• A)buy chips in Japan;supply of $;weaken
• B)buy chips in Japan;demand for yen;strengthen
• C)buy chips in United States;demand for $;strengthen
• D)buy chips in United States;demand for yen;weaken

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Definitions:

Fallacy

A mistaken belief or an error in reasoning, often resulting in invalid or misleading arguments.

Affirming Consequent

A logical fallacy where a conclusion is incorrectly inferred solely based on the truth of its consequent, despite lacking sufficient evidence.

Hypothetical Syllogism

A logical argument consisting of two conditional statements and a conclusion, based on the premise that if one condition is true, then a second condition must follow.

Modus Tollens

A form of logical argument where the denial of the consequent leads to the denial of the antecedent, symbolically represented as "If P then Q; not Q; therefore not P."