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Suppose US

Question 47

Multiple Choice

Suppose U.S.-produced wheat costs $5 per bushel and the exchange rate is 100 yen = $1. If the exchange rate changes to 90 yen = $1, the


A) wheat would now cost more dollars.
B) wheat would now cost the Japanese citizen less yen.
C) wheat would now cost less dollars.
D) wheat would now cost the Japanese citizen more yen.
E) yen has depreciated in value.

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