Any event that reduces the U.S. demand for Japanese yen should result in a(n) ____ in the value of the Japanese yen with respect to ____, other things being equal.
A) increase; U.S. dollar
B) increase; nondollar currencies
C) decrease; nondollar currencies
D) decrease; U.S. dollar

Question

Quizplus · Accepted Answer

A decrease in the U.S. demand for Japanese yen means that fewer U.S. dollars will be exchanged for Japanese yen, leading to a decrease in demand for the yen in the foreign exchange market. This decrease in demand should result in a decrease in the value of the yen with respect to the U.S. dollar, other things being equal.

Any Event That Reduces the U