The dollar moves from 110 yen to 85 yen, this means that:
A) The dollar is depreciating
B) Dollar supply exceeds demand
C) US exports should be more competitive in Japan
D) All of the above

Question

Quizplus · Accepted Answer

When the dollar moves from 110 yen to 85 yen, it means that you now need fewer yen to buy a dollar, indicating the dollar is appreciating, not depreciating. This situation typically occurs when the supply of dollars is less than the demand for dollars, making US exports more competitive in Japan as American goods become cheaper in yen terms.

The Dollar Moves from 110 Yen to 85 Yen, This