Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1 . Now the exchange rate changes to 90 yen = $1 . Then the:
a. machine would now cost more dollars.
b. machine would now cost the Japanese citizen less yen.
c. machine would now cost less dollars.
d. machine would now cost the Japanese citizen more yen.
e. yen has depreciated in value.
b
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Indicate whether the statement is true or false
Which of the following was an objective of the framers of the Federal Reserve System?
A) Decentralized power B) Executive branch power C) Elimination of private-sector influence D) Consolidation of the banking industry
If a tire manufacturer agrees to sell its tires to an automobile producer on the contractual condition that the automobile producer purchases 100 percent of its tires needed from the tire manufacturer, this is an example of ________.
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An increase in the demand for British pounds might result from: a. a reduction in the price level in the U.S. relative to Britain. b. a recession in the U.S. which reduces real output
c. a decline in interest rates in Britain. d. a decline in interest rates in the U.S.