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

If the U.S. demand for Japanese yen decreases, it means that there will be a decrease in the demand for the currency, which will cause the value of the Japanese yen to decrease with respect to the U.S. dollar, other things being equal. Therefore, the correct option is D - decrease in the value of the Japanese yen with respect to the U.S. dollar.

Any Event That Reduces the U