The table shows exchange rate data for two periods. Period Exchange rate: 1 USD = Before 100 Japanese yen After 120 Japanese yen A Japanese firm imports mac...

Assessment: Economics 0455 | Paper 1 Mock 01 | Multiple Choice Subject: Economics - 0455

Question 1 Report

The table shows exchange rate data for two periods.

PeriodExchange rate: 1 USD =
Before100 Japanese yen
After120 Japanese yen
A Japanese firm imports machinery from the US costing $50 000. The cost in yen has

Answer Details

Before: $50 000 x 100 = 5 000 000 yen. After: $50 000 x 120 = 6 000 000 yen. The yen has depreciated (more yen needed per dollar), making imports from the US more expensive for Japanese firms.

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