If the Real Exchange Rate Depreciates from 1 Japanese Good

question 72

Multiple Choice

If the real exchange rate depreciates from 1 Japanese good per U.S. good to 0.5 Japanese good per U.S. good, then U.S. exports ______ and U.S. imports ______.

• A) increase; increase
• B) decrease; decrease
• C) increase; decrease
• D) decrease; increase

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Definitions:

True Science

An approach to understanding the natural world through systematic observation, experiment, and evidence, distinguishing it from pseudoscience.

Positive Correlation

A statistical relationship between two variables in which they move in the same direction, meaning as one variable increases, so does the other.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, and vice versa.

Alcohol Consumption

The intake of beverages containing ethanol, which can have various effects on health and behavior depending on the amount and frequency of use.