Suppose that in 2017 the exchange rate between Canadian dollars (C$) and yen (¥) was ¥200/C$....
Suppose that in 2017 the exchange rate between Canadian dollars (C$) and yen (¥) was ¥200/C$. In 2018, the exchange rate was ¥195/C$. How would this affect Japan's BOT (ignoring any possible feedback loop), all else being equal?
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Japan's BOT would increase. |
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Japan's BOT would decrease. |
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Japan's BOT would be unaffected. |
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Cannot be determined. |
Homework Answers
Answer:
Since the Yen has depreciated against Canadian dollar,it means that export will increases and import will decreases.Accordingly,Japan's BOT would increase due to increase in export.
Therefore correct answer is 'Japan's BOT would increase'.
Add Answer to:
Suppose that in 2017 the exchange rate between Canadian dollars
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