Questions: polnternational Finance and the Kxchange Rate - Ead of Chapter Problem
According to the graph, what happened to the value of the U.S. dollar (priced in yen) from 2013 to 2016?
The U.S. dollar appreciated in value relative to the yen.
The U.S. dollar did not change in value relative to the yen.
The U.S. dollar depreciated in value relative to the yen.
The yen appreciated in value relative to the U.S. dollar.
Transcript text: polnternational Finance and the Kxchange Rate - Ead of Chapter Problem
According to the graph, what happened to the value of the U.S. dollar (priced in yen) from 2013 to 2016?
The U.S. dollar appreciated in value relative to the yen.
The U.S. dollar did not change in value relative to the yen.
The U.S. dollar depreciated in value relative to the yen.
The yen appreciated in value relative to the U.S. dollar.
Solution
Solution Steps
Step 1: Identify the Time Period
The question asks about the value of the U.S. dollar relative to the yen from 2013 to 2016.
Step 2: Analyze the Graph
Examine the graph to observe the trend of the Japanese Yen to U.S. Dollar exchange rate from 2013 to 2016.
Step 3: Interpret the Exchange Rate Trend
From 2013 to 2016, the exchange rate increased from around 100 yen per dollar to approximately 120 yen per dollar.
Final Answer
The U.S. dollar appreciated in value relative to the yen.