If the exchange rate between the yen and the dollar changed from 110 yen = $1 to 100 yen = $1, then
A) the dollar depreciated
B) U.S. goods will become more expensive to the Japanese
C) the dollar appreciated
D) Japanese goods will become less expensive to U.S. citizens
E) the demand for dollars will decrease

Question

Quizplus · Accepted Answer

When the exchange rate changes from 110 yen = $1 to 100 yen = $1, it means that fewer yen are needed to buy one dollar, indicating that the dollar has depreciated relative to the yen.

If the Exchange Rate Between the Yen and the Dollar