If, in retaliation for "unfair" trade practices, Congress imposes a 30 percent tariff on Japanese DVD recorders, but at the same time, U.S. demand for Japanese goods increases, then, in the long run, ________, everything else held constant
A) the Japanese yen should appreciate relative to the U.S. dollar
B) the Japanese yen should depreciate relative to the U.S. dollar
C) there is no effect on the Japanese yen relative to the U.S. dollar
D) the Japanese yen could appreciate, depreciate or remain constant relative to the U.S. dollar
D
You might also like to view...
The immediate effect of increased population growth, with real GDP growth unchanged, is to
A) reduce economic growth by reducing per capita real GDP. B) increase economic growth by stimulating more saving. C) increase economic growth by boosting the capital stock. D) leave economic growth unchanged.
In the ordered pair (5, 3), 3 is the
a. horizontal location of the point. b. the slope. c. the x-coordinate. d. the y-coordinate.
Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as
a. unemployed and in the labor force. b. unemployed and not in the labor force. c. employed and in the labor force. d. not in the labor force.
Which of the following is NOT one of the functions of money?
A. store of value B. protection from increases in prices of goods and services C. unit of accounting D. medium of exchange