In the foreign exchange market between the Japanese yen and the U.S. dollar, an excess demand for Japanese yen will result in a depreciation of the Japanese yen relative to the U.S. dollar.

Question

Quizplus · Accepted Answer

An excess demand for Japanese yen will increase its exchange rate, resulting in an appreciation of the Japanese yen relative to the U.S. dollar.

In the Foreign Exchange Market Between the Japanese Yen and the U.S