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

A decline in U.S. income would likely lead to a decrease in demand for Japanese goods and services, reducing the demand for yen and placing downward pressure on its value.

Assume That the U