Assume that the UK experiences a significant decline in income, while Japan's income remains steady. This event should place ____ pressure on the value of the Japanese yen, other things being equal. (Assume that interest rates and other factors are not affected.)

Question

Quizplus · Accepted Answer

A significant decline in the UK's income will reduce the demand for the pound, causing its value to fall. This will make the yen more expensive relative to the pound, putting downward pressure on its value.

Assume That the UK Experiences a Significant Decline in Income