<p>This isn't part of my homework but I am genuinely interested in the mathematical proof behind this question (this is my line of work currently). I tried to work through it but after 2 hours gave up. It is beyond the scope of my intermediate economics class but I wanted to see what a proof would look like for it.</p>

<p>Suppose that the Japanese yen rises against the U.S. dollar—that is, it will take more dollars to
buy a given amount of Japanese yen. Explain why this increase simultaneously increases the
real price of Japanese cars for U.S. consumers and lowers the real price of U.S. automobiles for
Japanese consumers.</p>

CC BY-SA 4.0
2020-04-03T11:12:59.043Z
Welcome! Could you tell us about the work you did during those two hours? Although it's not a homework question, it's a related homework question... see https://economics.meta.stackexchange.com/questions/1465/economics-se-policy-on-homework-questions
emeryville
CC BY-SA 4.0
2022-04-23T12:04:44.197Z
If you want a mathematical proof, you need a mathematical model first.
Michael Greinecker
<currency><nonexpert><exchange-rates>
Math based proof for currency changes
chessanalyst
# Math based proof for currency changes

(Asked by: username_0 on 2020-04-03)

This isn't part of my homework but I am genuinely interested in the mathematical proof behind this question (this is my line of work currently). I tried to work through it but after 2 hours gave up. It is beyond the scope of my intermediate economics class but I wanted to see what a proof would look like for it.

Suppose that the Japanese yen rises against the U.S. dollar—that is, it will take more dollars to
buy a given amount of Japanese yen. Explain why this increase simultaneously increases the
real price of Japanese cars for U.S. consumers and lowers the real price of U.S. automobiles for
Japanese consumers.

**Tags:** currency, nonexpert, exchange-rates
> **Comments:**
> **username_1**: Welcome! Could you tell us about the work you did during those two hours? Although it's not a homework question, it's a related homework question... see https://economics.meta.stackexchange.com/questions/1465/economics-se-policy-on-homework-questions  
> **username_2**: If you want a mathematical proof, you need a mathematical model first.  

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## 0 answers

