Suppose that prices in the United States rise relative to prices in Japan. We expect that

A. the dollar will appreciate and the yen will depreciate.

B. the dollar will depreciate and the yen will appreciate.

C. both the dollar and the yen will appreciate.

D. both the dollar and the yen will depreciate.

B. the dollar will depreciate and the yen will appreciate.

Explanation:

Suppose that prices in the United States rise relative to prices in Japan. We expect that the dollar will depreciate and the yen will appreciate.

This is so because United States dollar would only be able to purchase fewer goods because of the rise in price to when the price was lower, hence depreciation in the value of dollar and vice versa