The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:
A. U.S. consumers increase their preference for Japanese cars.
B. the Bank of Japan tightens monetary policy.
C. real GDP in the U.S. increases.
D. the U.S. Federal Reserve tightens monetary policy.
Answer: D
Economics
You might also like to view...
If the interest rate in India increases, how will it affect the net exports of India?
What will be an ideal response?
Economics
The January effect refers to the fact that
A) most stock market crashes have occurred in January. B) stock prices tend to fall in January. C) stock prices have historically experienced abnormal price increases in January. D) the football team winning the Super Bowl accurately predicts the behavior of the stock market for the next year.
Economics