Suppose That Prices in Japan Increase by 8 Percent While

question 10

Multiple Choice

Suppose that prices in Japan increase by 8 percent while prices in the United States remain stable.We would expect that the result would be that in the foreign exchange market ___________________________,​ceteris paribus​.

• A) the dollar will appreciate and the yen will depreciate
• B) the dollar will depreciate and the yen will appreciate
• C) both the dollar and the yen will appreciate
• D) both the dollar and the yen will depreciate

---

Definitions:

International Trade

The exchange of goods, services, and capital across international borders or territories.

Postwar World

The period of time following a major war, characterized by recovery, reconstruction, and significant changes in political, social, and economic landscapes.

Histogram

A graphical representation of data using bars of different heights, where each bar groups numbers into ranges, showcasing frequency or distribution over a set interval.

Frequency Of Occurrence

Frequency of occurrence refers to how often a specific event, action, or behavior happens within a defined time period or dataset, often used in risk assessment and statistical analysis.