One U.S. dollar trades for 110 yen. Which of the following correctly explains the effect on Japanese automobile prices for holders of U.S. dollars if the U.S. dollar appreciated relative to the yen?

A) Since one U.S. dollar is worth fewer yen, Japanese automobiles are relatively more expensive to holders of U.S. dollars.

B) Since one U.S. dollar is worth fewer yen, Japanese automobiles are relatively less expensive to holders of U.S. dollars.

C) Since one U.S. dollar is worth more yen, Japanese automobiles are relatively less expensive to holders of U.S. dollars.

D) Since one U.S. dollar is worth more yen, Japanese automobiles are relatively more expensive to holders of U.S. dollars.

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ANSWER A Since one US dollar is worth fewer yen Japanese automobiles are relatively more expensive t... View the full answer