Supply of yen for sale and equilibrium value of the yen

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The US relaxes its controls on imports by Japanese companies. Other things being equal, how should this affect the (a) U.S. demand for Japanese yen, (b) supply of yen for sale, and (c) equilibrium value of the yen?

A. Demand for yen should not be affected, supply of yen for sale should increase, and the value of yen should decrease.

B. Demand for the yen should not be affected, supply of yen for sale should decrease, and the value of yen should increase.

C. Demand for the yen should increase, supply of yen for sale should increase and the value of yen should increase.

D. It will not have an affect on any of them.

Reference no: EM131245366

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