If the exchange rate of yen for dollars increases from 100 yen = 1 to 110 yen = 1, then:
a. Japanese-produced goods would become more expensive.
b. the dollar has depreciated.
c. the yen has appreciated.
d. U.S.-produced goods would become more expensive.
e. U.S. exports would increase.
Question 2
Which of the following would cause a rightward shift in the investment demand curve?
a. An increase in the interest rate.
b. An increase in the rate of capacity utilization.
c. An increase in households' disposable income;
d. An increase in business taxes.
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