The Decline in the Value of the Dollar Relative to the Yen

question 45

Multiple Choice

The decline in the value of the dollar relative to the yen will have what impact on the purchase of U.S. goods in Japan?

• A) U.S. goods will increase in cost, and Japan will import more.
• B) U.S. goods will increase in cost, and Japan will import less.
• C) U.S. goods will decrease in cost, and Japan will import more.
• D) U.S. goods will increase in cost, and Japan will export less.

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Definitions:

Consumer Surplus

The separation between the theoretical price consumers are willing to pay for a good or service and the practical price they pay.

Point Price Elasticity

A measure of how the quantity demanded of a good responds to a change in the price of that good, calculated at a specific point on the demand curve.

Quarterly Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price over the span of three months.

Per Capita Consumption

Measures the average amount of a good or service consumed per person within a population over a specific period.