The following figure depicts the supply for Japanese yen in the foreign currency

Question

The following figure depicts the supply for Japanese yen in the foreign currency exchange market. Use this figure to answer the following questions. Price (dollars per yen) Quantity (yen) If the United States central bank decreases the supply of U.S. dollars, the supply curve for yen will. If the exchange rate for yen falls, then the supply curve will shift rightward; shift leftward shift leftward; shift rightward shift rightward; also shift rightward shift leftward; also shift leftward not shift; not shift

Explanation / Answer

e should be the correct answer

Reason

There is no shift in the Yen supply unless the Japanese central bank decides to do so as it is evident from the graph that the curve is vertical in shape.

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