(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
A report is released that indicates Japanese cars last much longer that previously thought. If Japanese cars last much longer than US cars, what will happen to the yen/US dollar exchange rate?
(Description)
The first graph from the first slide is shown.
The following text is briefly written above the graph:
Suppose the United States and Japan are the only two trading countries in the world. What will happen to the value of the U.S. dollar if the following occur, toher things equal?
A report is released that indicates Japanese cars last much longer that previously thought, especially compared with American cars then the dollar will (appreciate, depreciate), blank line.
(Speaker)
A report indicating that Japanese cars last much longer than previously thought, especially when compare with American cars will increase the demand for Japanese cars. As Americans purchase more Japanese cars, they must first purchase more yen. As Americans demand more yen they will supply more US dollars to the market, causing the dollar to depreciate and the yen to appreciate.
(Description)
The following text is written above the graph:
A report is released that indicates Japanese cars last much longer that previously thought, especially compared with American cars then the dollar will DEPRECIATE.
The line, S, shifts downwards while retaining the same slope. This new line is labeled as S subscript 2. The line, S, is now labeled as S subscript 1.
A point, XR subscript 2, is labeled on the vertical axis, so that the value of, XR subscript 2, is less than the value of, XR subscript 1. An up arrow next to points, XR subscript 2, and, XR subscript 1, is drawn. A dotted line parallel to the horizontal axis, extending from point, XR subscript 2, intersects with lines, D, and, S subscript 2, at their intersection point.
The intersection point of lines, D, and, S subscript, is shifted to the down and right with respect to the intersection point of lines, D, and, S subscript 1.
Two right arrows between lines, S subscript 1, and, S subscript 2, are drawn.