Other Things the Same,if the Exchange Rate Changes from 125

question 140

Multiple Choice

Other things the same,if the exchange rate changes from 125 yen per dollar to 115 yen per dollar,the dollar has

• A) appreciated and so buys more Japanese goods.
• B) appreciated and so buys fewer Japanese goods.
• C) depreciated and so buys more Japanese goods.
• D) depreciated and so buys fewer Japanese goods.

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Definitions:

Utility Function

A mathematical representation of how a series of choices provides a level of satisfaction to an individual.

Utility Function

A mathematical representation describing how individuals rank different bundles of goods based on the level of satisfaction or utility they provide.

Wealth

The total value of all the financial assets and physical possessions owned by an individual, household, or nation, excluding liabilities.

Groin Vault

An architectural feature formed by the intersection at right angles of two barrel vaults, often used in Romanesque and Gothic buildings.