Final answer:
The correct answer is B) the dollar has depreciated relative to the yen, meaning the American tourist needs more dollars to buy the same amount of yen due to the weakening of the dollar's value.
Step-by-step explanation:
If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, the correct answer is: B) the dollar has depreciated relative to the yen. This means that for each U.S. dollar, you receive fewer Japanese yen which indicates that the value of the dollar has declined in comparison to the yen. Conversely, this does not mean that a Japanese tourist would pay more in yen for the same amount of dollars; it simply speaks to the strength of the dollar relative to the yen. Over time, exchange rates fluctuate due to changes in economic conditions, investor sentiments, and various other factors. For example, as stated earlier, from 2011 to 2013, the yen to the dollar was fairly stable, but there were periods when the yen saw a significant depreciation.
It is also useful to consider the implications of a weaker dollar for U.S. tourists traveling abroad, as they will find that their expenses for foreign services and goods become costlier; for example, a hotel bill will require more dollars to settle if the dollar value is lower than previously.