Assume That the Exchange Rate Between the Dollar and the Yen

question 125

Multiple Choice

Assume that the exchange rate between the dollar and the yen is ¥60 = $1. Suppose the exchange rate changes to ¥100 = $1. Because of the change:

• A)Australian exports should increase and Australian imports should increase.
• B)Australian exports should decrease and Australian imports should increase.
• C)Australian exports should increase and Australian imports should decrease.
• D)Australian exports should decrease and Australian imports should decrease.

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Definitions:

Sympathetic System

A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body for action.

Parasympathetic System

Part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Hormonal Transmission

The process by which hormones are released into the bloodstream by endocrine glands and then travel to target organs or tissues to exert their effects.

Hypertension

A chronic medical condition where the blood pressure in the arteries is persistently elevated, potentially leading to significant health issues.