Of there is an appreciation to kina relatively to yen, then Papua New Guinea;

A)would need more kina to buy Japanese goods
B)get a fewer yen per kina on foreign exchange market
C)goods become more expensive for the Japanese to buy than before
D) goods become cheaper for the Japanese to buy than before
Which is the correct answer?

1 answer

When discussing the appreciation of the kina relative to the yen, let's break down the options:

  1. A) would need more kina to buy Japanese goods - This is incorrect. If the kina appreciates against the yen, it means it takes less kina to buy Japanese goods since the kina has more purchasing power.

  2. B) get a fewer yen per kina on the foreign exchange market - This is incorrect. If the kina is appreciating relative to the yen, it means you would get more yen per kina, not fewer.

  3. C) goods become more expensive for the Japanese to buy than before - This is correct. As the kina appreciates, it becomes more expensive for Japanese buyers to purchase goods from Papua New Guinea since they have to spend more of their currency (yen) for the same amount of kina.

  4. D) goods become cheaper for the Japanese to buy than before - This is incorrect. Appreciation of the kina means that Japanese goods are now more expensive for Papua New Guineans, not the other way around.

Therefore, the correct answer is C) goods become more expensive for the Japanese to buy than before.