If the exchange rate between the yen and the dollar changes from 100 yen = $1 to 110 yen = $1, then:

Question

Quizplus · Accepted Answer

If the exchange rate changes from 100 yen = $1 to 110 yen = $1, then it means that the dollar has appreciated in value because now fewer yen are needed to buy one dollar. Option A is incorrect as the dollar has not depreciated. Option B is correct as U.S.-made goods will become less expensive to Japanese citizens because they can now buy more dollars with their yen. Option D is incorrect as Japanese-made goods will become less expensive to U.S. citizens because they need fewer dollars to buy the same amount of yen.

If the Exchange Rate Between the Yen and the Dollar