The following figure depicts the demand for Japanese yen in the foreign currency exchange market. Use this figure to answer the following questions. 
-If American cars enjoy new,fad-based popularity in Japan,then we can expect that the demand for yen
A) will not shift,because domestic demand is not related to exchange rates.
B) will not shift,because domestic demand only influences the U.S.supply curve.
C) can either increase from D1 to D2 or decrease from D1 to D3.
D) will increase from D1 to D2.
E) will decrease from D1 to D3.
Correct Answer:
Verified
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