In what way is a stronger yen/weaker dollar a burden for Japanese exporters?
A) They received dollars when they sell goods but most of their costs of production are in yen.
B) They receive yen when they sell goods but most of their costs of production are in dollars.
C) The price of their exports will decline, resulting in lower profits.
D) The stronger yen is likely to increase Japanese inflation, resulting in lower profits.
A
You might also like to view...
An economy is in the midst of a recession. An example of a government policy aimed at moving the economy back to potential GDP is:
a) an increase in taxes. b) an increase in government spending on infrastructure improvements. c) an increase in the poverty tax. d) a decrease in unemployment benefits.
After an increase in the demand for construction workers, the market will attain its new long-run equilibrium faster if
A) wages are flexible. B) wages are inflexible, forcing new people to enter the market. C) unions restrict the number of new construction workers. D) people ignore the shortage in the short run.