If the exchange rate between the yen and the dollar changes from 110 yen = 1 to 100 yen = 1, then:
a. the dollar has depreciated in value.
b. U.S.-made goods will become more expensive to Japanese citizens.
c. the dollar has appreciated in value.
d. Japanese-made goods will become less expensive to U.S. citizens.
e. there will be a decrease in the demand for dollars in the foreign exchange market.
Question 2
If Y = 100 billion, then C = 50 billion, and I = 60 billion. What will autonomous investment be when Y = 200 billion and C = 100 billion?
a. 50 billion
b. 60 billion
c. 100 billion
d. 120 billion
e. 200 billion
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