Suppose that on January 1 the exchange rate was ¥120 per U.S. dollar. On December 31 of that year, it was ¥125 per dollar. Over the course of that year, did the dollar appreciate or depreciate against the yen? Did the change in the exchange rate make U.S. goods and services more or less attractive to Japanese consumers? Explain.

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The Answer of Suppose that on January 1 the exchange rate was ¥120 per U.S. dollar. On December 31 of that year, it was ¥125 per dollar. Over the course of that year, did the dollar appreciate or depreciate against the yen? Did the change in the exchange rate make U.S. goods and services more or less attractive to Japanese consumers? Explain.

Suppose That on January 1 the Exchange Rate Was ¥120