Under a Fixed Exchange Rate System, an Increase in Japanese

question 113

Multiple Choice

Under a fixed exchange rate system, an increase in Japanese demand for U.S.agricultural goods would

• A)cause the U.S.balance of trade to worsen
• B)increase the supply of yen relative to the dollar
• C)decrease Japanese demand for dollars
• D)cause the yen to appreciate
• E)cause an immediate revaluation of the yen