If there is bilateral currency trade between Japan and the U.S., then as the supply of U.S. dollars on the world foreign exchange market ________, the price of a dollar in terms of Japanese yen will ________.

Question

Quizplus · Accepted Answer

As the supply of U.S. dollars increases, the value of the dollar relative to the yen will fall due to the basic economic principle of supply and demand.

If There Is Bilateral Currency Trade Between Japan and the U.S