-Which of the following would cause the demand curve for yen to shift as indicated in Figure 17-5 above?
A) A decrease in the U.S.price level.
B) An increase in the U.S.interest rate.
C) An increase in Japanese real GDP.
D) An increase in U.S.real GDP.
E) A decrease in U.S.real GDP.

Question

-Which of the following would cause the demand curve for yen to shift as indicated in Figure 17-5 above?
A) A decrease in the U.S.price level. 
B) An increase in the U.S.interest rate. 
C) An increase in Japanese real GDP. 
D) An increase in U.S.real GDP. 
E) A decrease in U.S.real GDP.

Quizplus · Accepted Answer

An increase in U.S. real GDP would lead to higher demand for imports, including those from Japan, thus increasing the demand for yen.

-Which of the Following Would Cause the Demand Curve for Yen