In the dollar-yen floating exchange rate relationship, dollar demand includes:
A) Dollar to yen conversions
B) Japanese exports to the US
C) Japanese investments in the US
D) US tourists going to Japan

Question

Quizplus · Accepted Answer

Japanese investments in the US create demand for dollars as Japanese investors need to convert yen into dollars to invest in the US.

In the Dollar-Yen Floating Exchange Rate Relationship, Dollar Demand Includes