Question

Suppose the real exchange rate of 105 Japanese yen to the dollar changes to 115 yen to the dollar. In this situation, the dollar has _________________, making Japanese goods __________ expensive for Americans

Answer 1

appreciated; less

Step-by-step explanation:

The blank will be filled with appreciated; less

When the Japanese yen exchange rate changes from 105 yen per dollar to 115 yen per dollar the dollar value is increased and now for Americans, the Japanese goods will be cheaper.

When the exchange rate of any currency decreases then the export rate decreases and the imports rate increases. Increase in the exchange rate is not good for the economy of that company.