Assume that Japan and the United States are engaged in a system of ﬂexible exchange rates. Refer to the graph. One U.S. dollar will purchase how many Japanese yen?

Question

Quizplus · Accepted Answer

Based on the graph, the intersection point of the supply and demand curves is at 125 yen per dollar. This means that one U.S. dollar can purchase 125 Japanese yen. Therefore, the correct answer is C).

Assume That Japan and the United States Are Engaged in a System