If the price of a car in the United States is $22,000, and the exchange rate between the dollar and the Japanese yen falls from 125 yen to 105 yen per dollar, then the price of the American car in Japan will
A. rise.
B. fall.
C. remain the same.
D. be irrelevant, because the Japanese government will impose restrictions on imports from the United States.
Answer: B
Economics
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