Assume That the Japanese Yen Is Expected to Depreciate Substantially

question 75

Multiple Choice

Assume that the Japanese yen is expected to depreciate substantially over the next year. The U.S.-based MNC has a subsidiary in Japan, where its costs exceed revenues. The overall value of MNC will ____ because of the yen's depreciation.

• A) decrease
• B) increase
• C) remain unchanged
• D) A and C are possible

---

Definitions:

Income

Money received, especially on a regular basis, for work or through investments.

Monthly Income

The total amount of money earned or received by an individual or household within the span of a month.

Beer

An alcoholic beverage made from fermented grains, primarily barley, with hops adding flavor.

Price

The financial expectation, necessity, or contribution made as payment for something.