Suppose the exchange rate between the United States and Japan changed from $1 =150 yen to $1 = 140 Yen,which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

A decrease in the exchange rate from $1 = 150 yen to $1 = 140 yen means that the dollar can now purchase fewer yen than before. This means that the dollar has lost some of its value relative to the yen, which is referred to as a depreciation of the dollar.

Suppose the Exchange Rate Between the United States and Japan