Given floating exchange rates,if Japan increases its demand for Canadian goods at the same time that Canada increases its demand for Japanese goods,then we would expect the yen's exchange value to:
A) Appreciate against the dollar
B) Depreciate against the dollar
C) Remain constant against the dollar
D) Appreciate,depreciate,or remain constant against the dollar

Question

Quizplus · Accepted Answer

The question does not provide any information about the demand for goods other than Canadian and Japanese goods. Therefore, we cannot predict the direction of the yen's exchange value against the dollar. It can appreciate, depreciate, or remain constant depending on other factors affecting the foreign exchange market.

Given Floating Exchange Rates,if Japan Increases Its Demand for Canadian