Any event that reduces the U.S.demand for Japanese yen should result in a(an)_______ in the value of the Japanese yen with respect to _______,other things being equal.
A) increase;U.S. dollar
B) increase;nondollar currencies
C) decrease;nondollar currencies
D) decrease;U.S. dollar

Question

Quizplus · Accepted Answer

If the U.S. demand for Japanese yen decreases, this means there will be less demand for yen in the foreign exchange market, causing the value of the yen to decrease. This would result in a decrease in the value of the Japanese yen with respect to the U.S. dollar, since the U.S. dollar is the primary currency used in the foreign exchange market for trading with the yen. Therefore, option D is the correct answer.

Any Event That Reduces the U