Use the following graph to answer the next question.
Assume that Japan and the United States are engaged in a system of flexible exchange rates. If more people in the United States decide to purchase Japanese cars, what effect will this have on the market for yen?
A. The supply of yen will decrease.
B. The price of yen will increase.
C. The supply of yen will increase.
D. The price of yen will decrease.
Answer: B
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Refer to the figure above. Suppose Starbucks charges $3.50 per cup for its latte. Which of the following is true?
i. At this price, the demand for Starbucks latte is inelastic. ii. If Starbucks raises the price of its latte, its revenue will increase. iii. If Starbucks lowers the price of its latte, it will increase its revenue. A) Only iii B) Only i C) Only ii D) i and ii E) i and iii
The employer is responsible for managing funds in an employee's defined contribution pension plan
Indicate whether the statement is true or false
The extra production gained by employing one more worker is called the:
A. opportunity cost of labor. B. marginal product of labor. C. real wage of labor. D. price of labor.
Contrast a positive supply shock with a negative supply shock.
a. A positive supply shock increases short-run aggregate supply, whereas a negative supply shock decreases short-run aggregate supply. b. A positive supply shock is an expected event, whereas a negative supply shock is an unexpected event. c. A positive supply shock is permanent, whereas a negative supply shock is temporary. d. A positive supply shock causes the short-run aggregate supply curve to shift leftward, whereas a negative supply shock causes the short-run aggregate supply curve to shift rightward.