-Refer to Figure 17-1.Assume the equilibrium exchange rate is $0.008 per yen at point A.If U.S.consumers decide to purchase more automobiles from Japan,then
A) nothing will happen
B) the supply curve will shift to S' and the demand curve will shift to D'
C) the supply curve will shift to S'
D) the exchange will rise to $0.012 per yen
E) exchange rate will return to $0.008 as soon as the market adjusts.

Question

-Refer to Figure 17-1.Assume the equilibrium exchange rate is $0.008 per yen at point A.If U.S.consumers decide to purchase more automobiles from Japan,then
A) nothing will happen 
B) the supply curve will shift to S' and the demand curve will shift to D' 
C) the supply curve will shift to S' 
D) the exchange will rise to $0.012 per yen 
E) exchange rate will return to $0.008 as soon as the market adjusts.

Quizplus · Accepted Answer

The Answer of 
-Refer to Figure 17-1.Assume the equilibrium exchange rate is $0.008 per yen at point A.If U.S.consumers decide to purchase more automobiles from Japan,then
A) nothing will happen 
B) the supply curve will shift to S' and the demand curve will shift to D' 
C) the supply curve will shift to S' 
D) the exchange will rise to $0.012 per yen 
E) exchange rate will return to $0.008 as soon as the market adjusts.