Suppose the exchange rate is initially set at 100 yen per dollar and increases to 125 yen per dollar.This would be expected to cause the price of U.S.goods in the Japanese economy to

A) increase.
B) change in a manner that cannot be determined without additional information.
C) remain the same since domestic demand remains the same.
D) decrease.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of another.

U.S. Goods

Products and commodities that are produced, manufactured, or grown within the United States.

Japanese Economy

The economic system of Japan, characterized by its large industrial capacity, emphasis on technology, and robust export sector.