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In What Way Is a Stronger Yen/weaker Dollar a Burden

Question 24

Multiple Choice

In what way is a stronger yen/weaker dollar a burden for Japanese exporters?


A) They received dollars when they sell goods but most of their costs of production are in yen.
B) They receive yen when they sell goods but most of their costs of production are in dollars.
C) The price of their exports will decline, resulting in lower profits.
D) The stronger yen is likely to increase Japanese inflation, resulting in lower profits.

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