An Increase in the Supply of Dollars and an Increase

question 107

Multiple Choice

An increase in the supply of dollars and an increase in the demand for Japanese yen

• A) increases the dollar price of yen.
• B) decreases the dollar price of yen.
• C) increases the yen price of dollars.
• D) does not change the exchange rate between dollars and yen.

---

Definitions:

Economics Definition

The study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Equilibrium

A market phase where demand is matched by supply, which in turn stabilizes prices.

Limited Resources

The scarcity of resources in comparison to the potentially limitless wants and needs, forcing the need for allocation decisions.

Capacity Utilization Rate

The percentage of a firm's total possible production capacity that is actually being used over a given period.