Suppose the Current Exchange Rate Between the United States and Japan

question 5

Multiple Choice

Suppose the current exchange rate between the United States and Japan is 3.9 yen per dollar while the equilibrium exchange rate is 3.3 yen per dollar. It is likely that:

• A) the quantity of imports into the United States will decrease because of an appreciation of the dollar.
• B) the quantity of imports into the United States will increase because of a depreciation of the dollar.
• C) the quantity of imports into the United States will increase because of an appreciation of the dollar.
• D) the quantity of imports into the United States will decrease because of a depreciation of the dollar.

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Definitions:

Interorganizational

Interorganizational pertains to the relationships or interactions between different organizations, often involving collaboration, partnerships, or competition across organizational boundaries.

Intraorganizational

Pertaining to activities, processes, or interactions that occur within a single organization.

Extraorganizational

Activities, processes, or relationships that exist or occur outside of an organization's own boundaries.

HR

Stands for Human Resources, a department within organizations focused on managing employee-related processes like hiring, training, and benefits administration.