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Consider the exchange rate between the U. S. dollar and the Japanese yen. If the

ID: 1207492 • Letter: C

Question

Consider the exchange rate between the U. S. dollar and the Japanese yen. If the yen appreciates, then Select one the dollar must depreciate the dollar must appreciate also the value of the dollar can increase, decrease, or remain unchanged the value of the dollar will remain constant We call the yearly summary of all the economic transactions between residents of one country and the rest of the world the Select one capital account trade surplus balance of payments trade deficit If a country is running a capital surplus, men me inflow of foreign Select one capital is greater than me outflow or me domestic currency abroad capital is less than the outflow of the domestic currency abroad goods and services is greater than the outflow or goods and services abroad goods and services is less than the outflow of goods and services abroad

Explanation / Answer

25. a. dollar must depreciate.

26. c. balance of payments.

27. a. capital is greater than the outflow of the domestic currency abroad.