In 2002, one U.S. dollar could be exchanged for 133 Japanese yen, and in 2011, a U.S. dollar was worth 77 yen. Based on this information, which statement is true?

Demand for the yen increased between 2002 and 2011, and demand for U.S. the dollar decreased.
Japanese businesses made more money than American businesses between 2002 and 2011.
Demand for the U.S. dollar increased between 2002 and 2011, and demand for the yen decreased.
More U.S. dollars were in circulation in 2002 than in 2011.

What is your answer?

Based on the information provided, the statement "Demand for the yen decreased between 2002 and 2011, and demand for the U.S. dollar increased" is true. This is because in 2002, one U.S. dollar could be exchanged for 133 Japanese yen, while in 2011, a U.S. dollar was worth 77 yen. This decrease in the value of the yen compared to the U.S. dollar indicates a decrease in demand for the yen and an increase in demand for the U.S. dollar.

To determine which statement is true based on the given information, we need to compare the exchange rates between the U.S. dollar and the Japanese yen in 2002 and 2011.

In 2002, one U.S. dollar could be exchanged for 133 Japanese yen. This means that the value of the U.S. dollar was higher relative to the yen at that time.

In 2011, a U.S. dollar was worth 77 yen. This implies that the value of the U.S. dollar decreased relative to the yen over the years.

Now, let's evaluate each statement to see which one aligns with the exchange rate data:

1. Demand for the yen increased between 2002 and 2011, and demand for the U.S. dollar decreased:
- This statement is supported by the exchange rate data. When the value of the U.S. dollar decreases relative to the yen, it implies that more people are demanding yen compared to the dollar. Therefore, this statement could be true.

2. Japanese businesses made more money than American businesses between 2002 and 2011:
- The exchange rate alone does not provide direct information about the profitability of businesses. Therefore, this statement cannot be concluded based solely on the given information.

3. Demand for the U.S. dollar increased between 2002 and 2011, and demand for the yen decreased:
- This statement is not consistent with the exchange rate data. The decrease in the value of the U.S. dollar relative to the yen indicates decreased demand for the U.S. dollar and increased demand for the yen. Therefore, this statement is not true.

4. More U.S. dollars were in circulation in 2002 than in 2011:
- The exchange rate does not provide information about the circulation of U.S. dollars. Therefore, this statement cannot be determined based on the given data.

Based on this analysis, the statement that is true is: "Demand for the yen increased between 2002 and 2011, and demand for the U.S. dollar decreased."