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Supply and Demand

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7. Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from: a decrease in Japanese interest rates

a. The yen depreciates, and the pound appreciates

b. The yen appreciates, and the pound depreciates

c, The yen depreciates, and the pound depreciates

d. The yen appreciates, and the pound appreciates

8.Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from: a decrease in the price of British goods

a. The yen depreciates, and the pound appreciates

b. The yen appreciates, and the pound depreciates

c, The yen depreciates, and the pound depreciates

d. The yen appreciates, and the pound appreciates

9.Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from: a decrease in British interest rates

a. The yen depreciates, and the pound appreciates

b. The yen appreciates, and the pound depreciates

c, The yen depreciates, and the pound depreciates

d. The yen appreciates, and the pound appreciates

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7. (A)
A decrease in Japanese interest rate would decrease the demand for the Japanese yen. A decrease in demand means that the yen would depreciate against ...

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