When the nominal exchange changes from 120 yen per dollar to 110 yen per dollar, the dollar has:
A)appreciated.
B)depreciated.
C)become overvalued.
D)become undervalued.

Name: When the nominal exchange changes from 120 yen per dollar to 110 yen per dollar, the dollar has: A)appreciated. B)depreciated. C)become overvalued. D)become undervalued.
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Question

Quizplus · Accepted Answer

In this case, the dollar now buys fewer yen than before. This means the dollar has depreciated.

When the Nominal Exchange Changes from 120 Yen Per Dollar