If the exchange rate changes from 100 yen per dollar to 150 yen per dollar, what has happened to the dollar?
A)It has appreciated and so buys more Japanese goods.
B)It has appreciated and so buys fewer Japanese goods.
C)It has depreciated and so buys more Japanese goods.
D)It has depreciated and so buys fewer Japanese goods.

Question

Quizplus · Accepted Answer

The dollar has appreciated because it now exchanges for more yen (150 instead of 100), allowing it to buy more Japanese goods.

If the Exchange Rate Changes from 100 Yen Per Dollar