Exchange rates and U.S. exports: A graphical relationship The following graph shows exports from the United States to Japan. (Note: U.S. exports are measured in yen on this graph, which will enable you to see U.S. exports on the same graph as Japanese exports in a later problem.)   [Please see the image]   Referring to the graph, why does the line showing exports from the United States slope upward? 1. The lower the price of the yen in term of dollars, the lower the exports from the United States to Japan.   2. The higher the price of the yen in term of dollars, the higher the exports from Japan to the United States.   3. The higher the price of the yen in term of dollars, the lower the exports from the United States to Japan.   4. The lower the price of the yen in term of dollars, the higher the exports from the United States to Japan.     Suppose that the exchange rate goes from $10 per 1,000 yen to $8 per 1,000 yen.   On the previous graph, adjust the position of the orange point (square symbol) to show what happens to exports from the United States when the exchange rate (measured in dollars per yen) decreases. (Note: Select and drag the orange point along the curve.

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3. Exchange rates and U.S. exports: A graphical relationship

The following graph shows exports from the United States to Japan. (Note: U.S. exports are measured in yen on this graph, which will enable you to see U.S. exports on the same graph as Japanese exports in a later problem.)
 
[Please see the image]
 
Referring to the graph, why does the line showing exports from the United States slope upward?
1. The lower the price of the yen in term of dollars, the lower the exports from the United States to Japan.
 
2. The higher the price of the yen in term of dollars, the higher the exports from Japan to the United States.
 
3. The higher the price of the yen in term of dollars, the lower the exports from the United States to Japan.
 
4. The lower the price of the yen in term of dollars, the higher the exports from the United States to Japan.
 
 
Suppose that the exchange rate goes from $10 per 1,000 yen to $8 per 1,000 yen.
 
On the previous graph, adjust the position of the orange point (square symbol) to show what happens to exports from the United States when the exchange rate (measured in dollars per yen) decreases. (Note: Select and drag the orange point along the curve. The point will snap into position, so if you try to move the point and it snaps back to its original position, just try again and drag it a little farther.)
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