If the Dollar Appreciates Relative to the Yen

question 74

Multiple Choice

If the dollar appreciates relative to the yen

• A)there is no reason to expect either appreciation or depreciation of the yen.
• B)the yen must depreciate relative to the dollar.
• C)the yen may also appreciated in value.
• D)the yen will appreciate only if U.S.exports to Japan exceed U.S.imports from Japan.

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Definitions:

Business

Organized efforts by individuals or entities to produce, sell goods or provide services for profit.

Factor Market

A marketplace where factors of production (e.g., labor, capital, land) are bought and sold.

Circular-Flow Diagram

A visual model of the economy that shows the flow of money, goods and services, and factors of production between households and businesses.

Firms

Businesses or companies that produce goods or provide services with the aim of making a profit.