The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will depreciate when:
A. Japanese consumers increase their preference for U.S. cars.
B. the U.S. Federal Reserve eases monetary policy.
C. real GDP in the U.S. decreases.
D. the Bank of Japan eases monetary policy.
Answer: B
Economics
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