Starting with an exchange rate of $1 = ¥110,and a price tag of ¥30,000 for a Japanese good,what happens to the dollar price of the good if the yen appreciates by 6 percent?
A) the dollar price of the good rises from $272.73 to $289.09
B) the dollar price of the good falls from $272.73 to $256.37
C) the dollar price of the good rises from $330,000 to $349,800
D) the dollar price of the good falls from $330,000 to $310,200
E) the dollar price of the good rises falls from $2,700 to $2,560
Correct Answer:
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