Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
B → C → D → A
B
B → A → C → D
C
A → D → C → B
D
C → B → A → D
Understanding the Answer
Let's break down why this is correct
Answer
When capital flows from Japan to the U. S. , it increases the supply of Yen in the foreign exchange market, which is step B. As more Yen are available, this leads to a depreciation of the Yen against the dollar, which is step C. With the Yen now weaker, U.
Detailed Explanation
When money flows from Japan to the U.S., it increases the number of Yen available. Other options are incorrect because This option suggests that the supply of Yen affects prices before demand changes; This choice puts the cause of Yen depreciation before the demand increase.
Key Concepts
Yen Market Dynamics
Capital Flows
Exchange Rates
Topic
Yen Market Dynamics
Difficulty
medium level question
Cognitive Level
understand
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