The U.S. exports computers with a domestic price of $100,000 and the yen/dollar exchange rate is 120 on January 1, 2003. On January 1, 2004 the yen/dollar exchange rate is 125
What is the yen price of the computers on January 1, 2003? What is the yen price of the computers on January 1, 2004?
January 1, 2003: $100,000 × 120 yen/dollar = 12,000,000 yen
January 1, 2004: $100,000 × 125 yen/dollar = 12,500,000 yen
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A) The purchase of specific categories of assets with new money. B) The sale of long-term government bonds for foreign exchange. C) the purchase of long-term government bonds using foreign exchange. D) raising reserve requirements by commercial banks. E) selling gold reserves.
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