Suppose the real exchange rate of 115 Japanese yen to the dollar changes to 105 yen to the dollar. In this situation, the dollar has __________, making Japanese goods __________ expensive for Americans
A) appreciated; less
B) appreciated; more
C) depreciated; less
D) depreciated; more
D
You might also like to view...
Which of the following has not been suggested as a reconciliation of Leontief's findings?
A) international differences in tastes B) U.S. tariff structure C) failure to take into account natural resources D) temporary data problems immediately after World War II
What might an "anti-inflation hawk" do so that good macroeconomic performance is likely to continue under his or her successors as head of the central bank?
What will be an ideal response?
Two nations with differing comparative advantages will be able to consume more if they specialize and trade with each other than if they did not specialize or trade with each other.
Answer the following statement true (T) or false (F)
If foreign exchange rates are determined by the interaction of supply and demand forces for the various currencies, then the exchange rate is:
A. fixed. B. government-determined. C. set by the value of gold. D. floating.