2. If the Yen/USD is
110Y=1USD$, how much is one Yen worth in dollars?
a. .09
b. $1.10
c. $10.00
d. $ .90
The correct answer is "a". A simple solution to exchange rate problems is to divide both sides of the equation by 110. Now the problem becomes 1 = 1/110 or 1Y = .09USD. A depreciating dollar is good for our exports.
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