The US Dollar Exchange Rate, E, Expressed as Japanese Yen Per

question 72

Multiple Choice

The U.S. dollar exchange rate, e, expressed as Japanese yen per U.S. dollar, will depreciate when:

• A)real GDP in the U.S. increases.
• B)real GDP in Japan increases.
• C)the U.S. Federal Reserve tightens monetary policy.
• D)U.S. consumers decrease their preference for Japanese cars.

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