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?(1 point)

Question

Responses

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

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

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

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

Answer 1

If the U.S. dollar appreciates relative to the yen, it means that one U.S. dollar can buy more yen than before. Therefore, Japanese automobiles, which are priced in yen, would become relatively more expensive for holders of U.S. dollars.

The correct explanation is:

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