Question: (06.04 MC) Use the graph to answer the question that follows. A graph has Quantity of Yen along the horizontal axis and Dollar per Yen

(06.04 MC) Use the graph to answer the question that follows. A graph has Quantity of Yen along the horizontal axis and Dollar per Yen along the vertical axis. There are two downward sloping lines, labeled D0 and D1, with D1 to the left of D0. An upward sloping line, labeled S0, intersects D0 at a point higher and to the right of where S0 intersects D1. Which of the following could explain and accurately describe the shift from D0 to D1? (5 points) Aggregate income in the United States increases, decreasing demand for Japanese yen. American tastes shift toward Japanese goods, causing the Japanese yen to appreciate. Interest rates decrease in Japan relative to those in the United States, decreasing the demand for Japanese yen. The inflation rate in the United States increases leading to more U.S. goods being purchased, increasing demand for Japanese yen. The relative price level increases in Japan, increasing demand for Japanese yen

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