Question 11 If all other things are equal, increased imports of U.S. products to

Question

Question 11 If all other things are equal, increased imports of U.S. products to Japan will: O increase the demand for Japanese yen in the foreign exchange market. O increasethe supply of Japanese yen in the foreign exchange market O increase the demand for U.S. dollars in the foreign exchange market. O have no effect on either the supply or demand for Japanese yen or American dollars Question 12 U.S. residents demand foreign currencies to O produce goods and services exported to foreign countries. O pay for goods and services imported from foreign countries. O receive interest payments on investments in the United States. O have foreigners make real and financial investments in the United States.

Explanation / Answer

Q11

Answer

Option third

the increase in export means the demand for US goods increases which increases the demand for US currency and the Dollar appreciates.

Q12

Answer

Option second

the US residents use foreign currencies to import goods.

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