Foreign Exchange Graded Assignment | Read Chapter 11 | Back to Assignment Due Fr

Question

Foreign Exchange Graded Assignment | Read Chapter 11 | Back to Assignment Due Friday 12.01.17 at 11:45 PM Attempts: Average: /2 4. The foreign exchange market Aa Aa The following question focuses on the exchange rate between Japanese yen and U.S. dollars, defined as the number of Japanese yen you must pay for one dollar. Suppose that incomes decrease in Japan, causing Japanese consumers to purchase fewer U.S.-made goods and services. How does this affect the yen-dollar exchange rate? Drag the appropriate curve(s) on the following graph to illustrate how this change affects the market for dollars. Tool tip: Click and drag one or both of the curves. Curves will snap into position, so if you try to move the curve and it snaps back to its original position, just try again and drag it a little farther. EXCHANGE RATE [Yen per dollarl Supply Demand QUANTITY OF DOLLARS A decrease in incomes that causes Japanese consumers to buy fewer U.S.-made goods and services will cause the Japanese yn o appreciate relative to the dollar. QNA 3.16 2004-2016 Aplia. All rights reserved Dragger 1.24 Copyright© 2002-2013 Cengage Learning. All rights Grade It Now Save & Continue © 2013 Cengage Learning except as noted. All rights reserved. Continue without saving

Explanation / Answer

Shift the demand curvw paralelly downward or leftward which will decrease the exchange rate amd thus lower yen per dollar which oa known as appreciation of japanese yen.

Thus shift the demand curve paralellt leftward or downward.

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