Other things remaining unchanged, if American exports to Japan increase and American imports from Japan decrease, then under a floating exchange-rate system, we would expect

A. the yen value of a U.S. dollar to be higher in Tokyo than in New York.
B. the U.S. dollar to appreciate.
C. the supply curve of Japanese yen to shift inward.
D. the demand for Japanese yen to increase in the foreign exchange market.


Answer: B

Economics

You might also like to view...

Suppose demand is perfectly inelastic, and the supply of the good in question decreases. As a result,

a. the equilibrium quantity decreases, and the equilibrium price is unchanged. b. the equilibrium price increases, and the equilibrium quantity is unchanged. c. the equilibrium quantity and the equilibrium price both are unchanged. d. buyers' total expenditure on the good is unchanged.

Economics

The three broad types of factors of production are:

A) capital, labor, and natural resources. B) money, profit, and interest. C) stocks, bonds, and financial assets. D) technology, human capital, and comparative advantage.

Economics

A large open economy reduces its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________

A) rise; fall B) rise; rise C) fall; rise D) fall; fall

Economics

If a multi-plant firm has three plants and uses each of the plants to produce its product, the marginal cost to produce the firm's product is equal to ________.

A) the sum of the marginal costs from each of the three plants B) the plant with the highest marginal cost C) the plant with the lowest marginal cost D) the sum of the average fixed costs from each of the three plants

Economics