If the exchange rate between the US dollar and the Japanese yen changes from 110 yen per dollar to 100 yen per dollar, what does this imply about the value of the US dollar?

• A. There is no change in the value of the US dollar.
• B. The US dollar has depreciated relative to the yen.
• C. The US dollar has appreciated relative to the yen.
• D. The yen has depreciated relative to the US dollar.

Answer: (B)