Suppose the exchange rate between the Canadian dollar and the Japanese yen was $1 = 220 yen in 2012.In 2014, the exchange rate was $1 = 100 yen.Refer to the above information.Between 2012 and 2014, the:
A)dollar appreciated in value relative to the yen.
B)yen appreciated in value relative to the dollar.
C)dollar price of yen declined.
D)yen price of dollars increased.

Question

Quizplus · Accepted Answer

The yen appreciated in value relative to the dollar. This is because in 2012, $1 could buy 220 yen, but in 2014, $1 could only buy 100 yen. The decrease in the number of yen that can be purchased for $1 indicates that the yen has become relatively more valuable or appreciated in value relative to the dollar.

Suppose the Exchange Rate Between the Canadian Dollar and the Japanese