Assume that the U.S. experiences a significant decline in income, while Japan's income remains steady. This event should place ____ pressure on the value of the Japanese yen, other things being equal. (Assume that interest rates and other factors are not affected.)
A) upward
B) downward
C) no
D) upward and downward (offsetting)

Question

Quizplus · Accepted Answer

When the U.S. experiences a significant decline in income, the demand for Japanese goods and services will decrease, leading to a decrease in the demand for the Japanese yen. This will put downward pressure on the value of the Japanese yen.

Assume That the U