The following table shows the number of U.S. dollars required to buy one Mexican

Question

The following table shows the number of U.S. dollars required to buy one Mexican peso and the number of U.S. dollars required to buy one Japanese yen between June 1, 2016, and September 1, 2016. Use this table to answer the following questions. Date June 1, 2016 July 1, 2016 August 1, 20160.0541 September 1, 2016 0.0520 U.S. Dollars Required to Buy 1 Mexican Peso 0.0536 0.0537 U.S. Dollars Required to Buy 1 Japanese Yen 0.0095 0.0096 0.0099 0.0098 Between August 1, 2016, and September 1, 2016, the number of Japanese goods exported to the United States likely decreased because Japanese goods became more expensive to consumers in the United States. U.S. goods exported to Japan likely decreased because U.S. goods became less expensive to consumers in Japan Mexican goods exported to the United States likely increased because the Mexican peso depreciated against the U.S. dollar. U.S. goods exported to Mexico likely did not change because the Mexican peso is pegged to the Japanese yen but not to the U.S. dollar. Japanese goods exported to the United States likely increased because Japanese goods became less expensive to consumers in the United States

Explanation / Answer

e is the correct option

Reason

Between the specified period, there is a depreciation of the Japanese Yen in comparison to USD, thus the Japanese goods will cost lesser and thus the Japanse export should rise.

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