The supply curve for Japanese yen on the foreign- exchange market is upward- sloping when plotted against the exchange rate (measured as the Canadian dollar price of one Japanese yen) because
A) a depreciation of the dollar will cause the yen prices of Canadian goods to rise.
B) when the dollar appreciates, Canadian goods are cheaper in Japan.
C) when the dollar depreciates, the price of Japanese exports to Canada decreases.
D) when the dollar depreciates, Canadian goods are cheaper in Japan, and more Canadian exports are therefore demanded.
E) an appreciation of the dollar will cause the yen prices of Canadian exports to fall.
Correct Answer:
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