Asked by
dimas dwi setiawan
on Nov 26, 2024
Verified
Assume that Japan and the United States are engaged in a system of flexible exchange rates. If more people in the United States decide to purchase Japanese cars, what effect will this have on the market for yen?
A) The price of yen will increase.
B) The price of yen will decrease.
C) The supply of yen will increase.
D) The supply of yen will decrease.
Flexible Exchange Rates
A currency system where the value of a country's currency is allowed to fluctuate according to the foreign exchange market forces of demand and supply.
Market for Yen
The foreign exchange market where the Japanese yen is traded, including the buying, selling, and speculating on yen.
- Ascertain the processes involved in establishing exchange rates in systems characterized by flexible exchange rates.
Verified Answer
LC
Learning Objectives
- Ascertain the processes involved in establishing exchange rates in systems characterized by flexible exchange rates.