As the U.S.dollar appreciates and the Japanese yen depreciates,
A) U.S.-produced goods become more expensive for the Japanese and Japanese-produced goods become cheaper for Americans.
B) U.S.-produced goods become cheaper for the Japanese and Japanese-produced goods become more expensive for Americans.
C) U.S.-produced goods become cheaper for both the Japanese and Americans.
D) Japanese-produced goods become more expensive for both the Japanese and Americans.
E) none of the above

Question

Quizplus · Accepted Answer

When the U.S. dollar appreciates against the Japanese yen, it means that each dollar can buy more yen. Consequently, goods produced in the U.S. become more expensive for Japanese consumers, as they need more of their currency to buy the same amount of goods. Conversely, Japanese-produced goods become cheaper for Americans, as they need fewer dollars to buy the same amount of goods.

As the USDollar Appreciates and the Japanese Yen Depreciates