To Americans buyers, there is a decrease in the relative prices of Japanese goods when the
A) yen appreciates.
B) dollar appreciates.
C) inﬂation rate in the United States is higher than the inﬂation rate in Japan, and there are ﬂexible exchange rates.
D) inﬂation rate in Japan is higher than the inﬂation rate in the United States and there are ﬁxed exchange rates.

Question

Quizplus · Accepted Answer

When the dollar appreciates, it means the dollar can buy more yen, making Japanese goods cheaper for American buyers.

To Americans Buyers, There Is a Decrease in the Relative