When a Japanese resident buys a good or service from a U.S. producer, there is a(n)
A) increase in the supply of yen in the foreign exchange market.
B) decrease in the supply of yen in the foreign exchange market.
C) increase in the demand for yen in the foreign exchange market.
D) decrease in the demand for yen in the foreign exchange market.

Question

Quizplus · Accepted Answer

When a Japanese resident buys a good or service from a U.S. producer, they need to exchange yen for dollars, increasing the amount of yen available in the foreign exchange market.

When a Japanese Resident Buys a Good or Service from a U.S