Under a System of Floating Exchange Rates,a U

question 168

Multiple Choice

Under a system of floating exchange rates,a U.S.trade deficit with Japan will cause:

• A) A flow of gold from the United States to Japan
• B) The U.S.government to ration yen to U.S.importers
• C) An increase in the dollar price of yen
• D) A decrease in the dollar price of yen

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