An increase in the supply of Japanese yen on foreign exchange markets would decrease the equilibrium dollar price of yen.

Question

Quizplus · Accepted Answer

When the supply of Japanese yen increases in foreign exchange markets, it means there are more yen available relative to demand. This surplus of yen leads to a decrease in its value, meaning it takes fewer dollars to purchase yen, thus decreasing the equilibrium dollar price of yen.

An Increase in the Supply of Japanese Yen on Foreign