Suppose the euro-yen exchange rate falls while the dollar-yen exchange rate rises. What happens to the price of goods imported into Japan?
A. European goods become more expensive while U.S. goods become cheaper.
B. European goods become cheaper while U.S. goods become more expensive.
C. Both European and U.S. goods become cheaper.
D. Both European and U.S. goods become more expensive.
Answer: A
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