Suppose there occurs an increase in the Canadian demand for Japanese computers.This results in
A) an increase in the demand for yen.
B) a decrease in the demand for yen.
C) an increase in the supply of yen to Canada.
D) a decrease in the supply of yen to Canada.

Question

Quizplus · Accepted Answer

An increase in demand for Japanese computers in Canada would lead to an increased demand for yen to pay for those computers. This would shift the demand curve for yen to the right, resulting in an increase in the exchange rate between yen and other currencies, such as the Swiss franc. Therefore, there would be an increase in the demand for yen in the market for Swiss francs.

Suppose There Occurs an Increase in the Canadian Demand for Japanese