Under a Flexible Exchange-Rate System,an Increase in the Demand for Japanese

question 82

Multiple Choice

Under a flexible exchange-rate system,an increase in the demand for Japanese yen would cause the U.S.dollar-Japanese yen exchange rate to

• A)fall.
• B)rise.
• C)remain unchanged, because supply also increases.
• D)remain unchanged, because the exchange rate is set by the central bank.

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