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Chapter 28: Problem 14

If a Japanese radio priced at 2,000 yen can be purchased for \(\$ 10,\) the exchange rate is a. 200 yen per dollar. b. 20 yen per dollar. c. 20 dollars per yen. d. none of the above.

Short Answer

Expert verified
The exchange rate is 200 yen per dollar, which corresponds to option (a).

Step by step solution

01

Set up the proportion

Let's use x as the exchange rate in yen per dollar. We can set up the proportion: \[\frac{2000 \text{ yen}}{1 \text{ radio}} = \frac{\$ 10}{1 \text{ radio}}\]
02

Solve for x

Now, we can rearrange the equation to solve for x: \[x = \frac{2000 \text{ yen}}{\$ 10}\]
03

Simplify and find the answer

To find the exchange rate, divide the given yen amount by the given dollar amount: \[x = \frac{2000}{10} = 200 \text{ yen per dollar}\] So, the exchange rate is 200 yen per dollar, which corresponds to option (a).

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Most popular questions from this chapter

Which of the following is true when two countries specialize according to their comparative advantage? a. It is possible to increase their total output of all goods. b. It is possible to increase their total output of some goods only if both countries are industrialized. c. One country is likely to gain from trade, while the other loses. d. None of the above is true.

The United States a. was on a fixed exchange rate system prior to late 1971 , but now is on a flexible exchange rate system. b. has been on a fixed exchange rate system since 1945 c. has been on a flexible exchange rate system since 1945 d. was on a flexible exchange rate system prior to late \(1983,\) but now is on a fixed exchange rate system.

Which of the following would cause the U.S. dollar to depreciate against the Japanese yen? a. Greater popularity of U.S. exports in Japan b. A higher price level in Japan c. Higher real interest rates in the United States d. Higher incomes in the United States

Suppose the exchange rate changes so that fewer Japanese yen are required to buy a dollar. We would conclude that a. the Japanese yen has depreciated in value. b. U.S. citizens will buy fewer Japanese imports. c. Japanese will demand fewer U.S. exports. d. none of the above will occur.

If the dollar appreciates (becomes stronger), this causes a. the relative price of U.S. goods to increase for foreigners. b. the relative price of foreign goods to decrease for Americans. c. U.S. exports to fall and U.S. imports to rise. d. a balance of trade deficit for the United States. e. all of the above to occur.
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