Under a floating exchange rate system, an increase in U.S. imports of Japanese goods  will cause the demand schedule for Japanese yen to:
A. Increase, inducing a depreciation in the yen
B. Decrease, inducing a depreciation in the yen  
C. Increase, inducing an appreciation in the yen  
D. Decrease, inducing an appreciation in the yen

1 Answer

Answer :

C. Increase, inducing an appreciation in the yen

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