Suppose a U.S.-made machine costs $500 and the exchange rate was 100 yen = $1 yesterday. Today the exchange rate is 90 yen = $1 . You know then that the
a. machine would now cost more dollars
b. machine would now cost the Japanese firm less yen
c. machine would now cost less dollars
d. machine would now cost the Japanese firm more yen
e. yen has depreciated in value
B
You might also like to view...
"If country A has a higher level of real GDP per person than country B, then people in Country A must enjoy a higher standard of economic welfare than people in Country B." Is this statement true or false and explain your answer
What will be an ideal response?
If prices rise in Japan, everything else constant, the dollar __________ against the yen and the yen __________ against the dollar
A) appreciates; appreciates B) appreciates; depreciates C) depreciates; appreciates D) depreciates; depreciates
A graph is one method of expressing a model
a. True b. False Indicate whether the statement is true or false
If a U.S. shirt maker purchases cotton from Egypt, U.S. net exports
a. increase, and U.S. net capital outflow increases. b. increase, and U.S. net capital outflow decreases. c. decrease, and U.S. net capital outflow increases. d. decrease, and U.S. net capital outflow decreases.