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:

Caveat Emptor

“Let the buyer beware.”

Unmerchantable

Referring to goods or products that fail to meet minimum quality standards for sale to consumers or are otherwise unfit for their intended purpose.

Merchantability

A warranty that goods sold meet reasonable quality and usage standards as per the market.

Implied Warranty

A legal assumption that a product will meet certain standards of quality and reliability even if not explicitly stated.