-Refer to the Above Figure

question 29

Multiple Choice

-Refer to the above figure. Suppose E is the original equilibrium. An increase in the U.S. demand for Japanese-made goods will lead to

• A) a depreciation of the yen and an increase in the quantity of yen sold per week.
• B) a depreciation of the yen and a decrease in the quantity of yen sold per week.
• C) an appreciation of the yen and an increase in the quantity of yen sold per week.
• D) an appreciation of the yen and a decrease in the quantity of yen sold per week.

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Definitions:

Credit

An accounting entry that either increases a liability or equity account or decreases an asset or expense account.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest.

Assets

Economic resources owned or controlled by a business, expected to provide future benefits.

Supplies

Items or materials used in the operation of a business, often consumable in nature.