Suppose the real exchange rate of 115 Japanese yen to the dollar changes to 105 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 depreciated because it now exchanges for fewer yen (from 115 to 105), making Japanese goods more expensive for Americans.

Suppose the Real Exchange Rate of 115 Japanese Yen to the Dollar