-Refer to the Above Figure

question 69

Multiple Choice

-Refer to the above figure. Suppose E is the original equilibrium. An increase in the demand for dollars will be reflected in this figure by

• A) an increase in the demand for yen as both imports and exports increase.
• B) a decrease in the demand for yen as the U.S. balance of payments improves.
• C) an increase in the supply of yen as Japan tries to buy more U.S. goods.
• D) a decrease in the supply of yen as Japan is able to pay less for U.S. goods.