If the exchange rate between the United States and Japan changes from $1 = 100 yen to $1 = 110 yen, then, ceteris paribus, the price of American goods in Japan

A) could either increase or decrease.
B) will decrease.
C) will remain the same.
D) will increase.

Question

Molly Puthoff · Accepted Answer

Final Answer : D, Explanation :  When the exchange rate changes from $1 = 100 yen to $1 = 110 yen, it means that the dollar has appreciated relative to the yen. This makes American goods more expensive in Japan, as it now costs more yen to buy the same amount of dollars to purchase American goods.

If the exchange rate between the United States and Japan changes from $1 = 100 yen to $1 = 110 yen, then, ceteris paribus, the price of American goods in Japan

A) could either increase or decrease.
B) will decrease.
C) will remain the same.
D) will increase.

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Learning Objectives

Related questions

If the exchange rate between the United States and Japan changes from $1 = 100 yen to $1 = 110 yen, then, ceteris paribus, the price of American goods in JapanA) could either increase or decrease.B) will decrease.C) will remain the same.D) will increase.

Definitions

Learning Objectives

Learning Objectives

Related questions

If the exchange rate between the United States and Japan changes from $1 = 100 yen to $1 = 110 yen, then, ceteris paribus, the price of American goods in Japan

A) could either increase or decrease.
B) will decrease.
C) will remain the same.
D) will increase.