Which of the following would cause the Australian dollar to depreciate against the Japanese yen?

Question

Quizplus · Accepted Answer

Higher incomes in Australia could lead to an increase in the demand for imports, including those from Japan. This could increase the supply of Australian dollars on the foreign exchange market as Australians exchange AUD for JPY to pay for these imports, potentially leading to a depreciation of the Australian dollar against the Japanese yen. Choices A, B, and C would generally cause an appreciation of the Australian dollar or have no direct effect on its depreciation against the yen.

Which of the Following Would Cause the Australian Dollar to Depreciate