Assume that the United States experiences a significant decline in income, while Japan's income remains steady. This event should place ____ pressure on the value of the Japanese yen, other things being equal. (Assume that interest rates and other factors are not affected.)
A) upward
B) downward
C) no
D) upward and downward (offsetting)

Question

Assume that the United States experiences a significant decline in income, while Japan's income remains steady. This event should place ____ pressure on the value of the Japanese yen, other things being equal. (Assume that interest rates and other factors are not affected.)​
A) ​upward
B) ​downward
C) ​no
D) ​upward and downward (offsetting)

Quizplus · Accepted Answer

A significant decline in income in the United States will lead to a decrease in demand for Japanese goods and services, which will put downward pressure on the value of the Japanese yen.

Assume That the United States Experiences a Significant Decline in Income