In a supply and demand diagram for Japanese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn sloping ?
Correct answer: C. downward
- A. upward
- B. vertical
- C. downward
- D. horizontal
Explanation
With dollars per yen on the vertical axis, a higher exchange rate makes yen more expensive in dollar terms. Buyers therefore demand fewer yen, giving the demand curve a downward slope.
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