If the equilibrium exchange rate between U.S. dollars and Japanese yen is $0.01 = 1 yen, but currently the exchange rate is $0.009 = 1 yen, then with flexible exchange rates the dollar price of a yen will __________ and the yen will __________

A) increase; appreciate
B) decrease; appreciate
C) increase; depreciate
D) decrease; depreciate


A

Economics

You might also like to view...

Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.

A. lower; potential B. higher; higher C. lower; higher D. higher; potential

Economics

Consider an NBA superstar Kobe Bryant and one of your economics professors. Who is likely to receive more economic rent in his/her job? Explain your answer

What will be an ideal response?

Economics

If Sally maximizes her total utility by allocating time between two different activities, she will select the combination at which the marginal utility per hour spent is the same in both activities

a. True b. False

Economics

Opportunity cost is the highest possible price you can receive when you sell an object

a. True b. False Indicate whether the statement is true or false

Economics