Suppose the Japanese Yen Increases in Its Value Relative to the U.S

question 222

Multiple Choice

Suppose the Japanese yen increases in its value relative to the U.S. dollar. In the U.S. economy,

• A)the price level will increase and real GDP will fall if the increase in aggregate demand is less than the decrease in aggregate supply.
• B)the price level will increase and real GDP will fall if the decrease in aggregate demand is more than the increase in aggregate supply.
• C)the price level will fall and real GDP will increase if the increase in aggregate supply is greater than the decrease in aggregate demand.
• D)the price level will fall and real GDP will decrease if the decrease in aggregate demand is less than the increase in aggregate supply.

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Definitions:

Native Language Speakers

Individuals who speak a language that they have acquired in their early childhood and consider it their first language.

Infant-Directed Speech

A type of speech characterized by a higher pitch, slower tempo, and exaggerated intonation, used by adults when talking to infants, to aid language acquisition.

Various Cultures

The diverse sets of traditions, beliefs, languages, and customs practiced by different groups of people around the world.

Poverty

A state of economic deprivation where individuals lack sufficient income or resources to achieve a standard of living considered acceptable in society.