If the U.S. dollar weakens against the Japanese Yen, which of the following will occur.

A) Japanese imports will be more expensive in the U.S.
B) Japanese imports will be less expensive in the U.S.
C) American imports will be less expensive in Japan.
D) Both a. and c. are correct.
E) None of the above is correct.

Question

CHRISTOPHER MARROQUIN · Accepted Answer

Final Answer : D, Explanation :  When the U.S. dollar weakens against the Japanese Yen, it means that you need more dollars to buy the same amount of yen. This makes Japanese imports more expensive in the U.S. because it costs more dollars to buy goods priced in yen. Conversely, it makes American imports less expensive in Japan because the yen can now buy more goods priced in dollars.

Definitions

Learning Objectives

Learning Objectives

Related questions