Carlos is a grain farmer in the state of Nebraska. If the dollar continues to weaken with respect to the yen, he may be well-advised to

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Trinity Blackwell

3 April, 12:34

Carlos is a grain farmer in the state of Nebraska. If the dollar continues to weaken with respect to the yen, he may be well-advised to

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Kaia Woodward · Answer 1

Carlos the Nebraska farmer is well advised to stack his produce, and to not make it available for sale in bulk till the Dollar-Yen gap reduces.

Explanation:

The dollar to yen value is inversely proportional to each other,

In simple words, when the dollar value goes up, the Yen currency value is seen to go down and vice versa.

With the dollar value on decline, the prices of goods will go up, and as a result, the savings of an average middle class american farmer will decline rapidly.

In agriculture one constantly needs to purchase supplements and tools for their crops, which will prove to be a costly affair during such economic situation.

Hence, it is best advised to reduce the agriculture activity and make available the produce in less amount, because starting to cultivate a new produce after the sale of current produce will be expensive.