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Interpreting Exchange Rate Changes

An American company imports electronic components from Japan. Last year, a component cost 1,500 Japanese Yen (JPY), which was equivalent to 10 U.S. Dollars (USD). This year, the same component still costs 1,500 JPY, but the American company now has to pay 12 USD for it. Based on this information, has the U.S. Dollar appreciated or depreciated against the Japanese Yen? Explain your reasoning by referencing the change in the number of currency units required for the transaction.

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Updated 2025-10-06

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