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Topic
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If the value of the US dollar in foreign currency markets changes from $1 = 95 yen to $1 = 90 yen,
which of the following is true?
a) US tourists in Japan will find their dollars will buy more Japanese products.
b) The Japanese yen has depreciated against the dollar.
c) US exports to Japan should decrease.
d) Japanese imported products in the US will become more expensive.
The answer is (d) but I do not understand why it cannot also be (b). Someone please explain.
REG - 89, 04/29/13
BEC - 81, 08/06/13
FAR - 84, 12/19/13
AUD - 82, 10/05/13
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