The Japanese recession of 2007-2009 decreased the demand for imports in Japan, which caused the ________ curve for the yen to shift ________, increasing the exchange rate and the value of the yen.
A)supply; right
B)supply; left
C)demand; right
D)demand; left

Question

Quizplus · Accepted Answer

The Japanese recession decreased the demand for imports in Japan. A decrease in demand for imports will shift the supply curve for yen to the right, resulting in an increase in the exchange rate and the value of the yen. Therefore, the correct choice is B, supply; left.

The Japanese Recession of 2007-2009 Decreased the Demand for Imports