If Japanese buyers demand more U.S. dollars, then the dollar will _____, the yen will _____, the U.S. balance of payments on current account will _____, and the U.S. balance of payments on financial account will _____.

Question

Quizplus · Accepted Answer

If Japanese buyers demand more U.S. dollars, the dollar will appreciate and the yen will depreciate. The U.S. balance of payments on the current account will fall due to a stronger dollar making exports more expensive, while the financial account will rise as more capital flows into the U.S.

If Japanese Buyers Demand More U