When Americans decrease their demand for Japanese goods
A)the demand for dollars will rise,and the demand for yen will rise.
B)the demand for dollars will fall,and the demand for yen will rise.
C)the supply of dollars will rise,and the demand for yen will rise.
D)the supply of dollars will fall,and the demand for yen will fall.

Question

Quizplus · Accepted Answer

When Americans decrease their demand for Japanese goods, they need fewer yen to purchase those goods, leading to a decrease in the demand for yen. Consequently, they supply fewer dollars to the foreign exchange market, causing the supply of dollars to fall.

When Americans Decrease Their Demand for Japanese Goods