If there is a strong possibility that the dollar price of the Japanese yen will fall in the next few months,which of the following would we expect to happen right now in the market for yen?
A) A rightward shift of the demand curve,a leftward shift of the supply curve,and an appreciation of the yen
B) A leftward shift of the demand curve,a rightward shift of the supply curve,and an appreciation of the yen
C) A leftward shift of the demand curve,a leftward shift of the supply curve,and a depreciation of the yen
D) A rightward shift of the demand curve,a rightward shift of the supply curve,and an appreciation of the yen
E) A leftward shift of the demand curve,a rightward shift of the supply curve,and a depreciation of the yen.

Question

Quizplus · Accepted Answer

If the dollar price of the yen is expected to fall, demand for yen will decrease (leftward shift), and supply of yen will increase (rightward shift) as people try to sell yen before it depreciates, leading to a depreciation of the yen.

If There Is a Strong Possibility That the Dollar Price