Suppose the U

question 11

Multiple Choice

Suppose the U.S.price level rises 25 percent at a time when Japan experiences stable prices.As a result,the U.S.demand for Japanese goods will __________,and the Japanese demand for U.S.goods will __________; in turn,this will increase the demand for Japanese yen and decrease the supply of Japanese yen; in turn,the dollar will depreciate and the yen will appreciate.

• A) rise; fall
• B) fall; rise
• C) rise; rise,too
• D) fall; fall,too

---

Definitions:

Consideration

A value (such as money, service, or goods) exchanged between parties in a contract, making the agreement legally binding.

Fairness

The quality of being impartial, just, and equitable in decisions and actions.

Bargaining Process

The negotiation or discussion between two or more parties to come to a mutually acceptable agreement or contract.

Internet

A global network of computers and servers enabling information exchange and communication.