Suppose the Exchange Rate Between the Japanese Yen and the Canadian

question 2

Multiple Choice

Suppose the exchange rate between the Japanese yen and the Canadian dollar is 130 yen to the dollar.If it then changes to 150 yen to the dollar,what will happen to the price of Canadian goods for Japanese importers?

• A)It will change in an indeterminate direction.
• B)It will fall.
• C)It will rise.
• D)It will stay the same.

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