Suppose the real exchange rate of 105 Japanese yen to the dollar changes to 115 yen to the dollar.In this situation,the dollar has _________________,making Japanese goods __________ expensive for Americans.
A) appreciated; less
B) appreciated; more
C) depreciated; less
D) depreciated; more

Question

Quizplus · Accepted Answer

The dollar has appreciated because it takes more yen to equal one dollar, making Japanese goods less expensive for Americans as they need fewer dollars to buy the same amount of yen.

Suppose the Real Exchange Rate of 105 Japanese Yen to the Dollar