Question $1$

$3\mathrm{.}36$ pts

Please use the chart below $-$ which plots the indirect quote for Japanese yen $($the number of yen per $1$ USD$)-$ to answer the following question. Companies $A,B,$ and $C$ are all US based.

Company A manufactures all of its goods in the US and sells them in Japan.

Company B manufactures and sells all its goods in the US where it also competes with Japanese firms.

Company $C$ manufactures and sells all its goods in Japan.

During the $1990-94$ period the net cash flow of Company A would have $q,$ and net cash flow of Company $C$ would have $q,$

$$ increased; increased

decreased; decreased

increased; not changed much

decreased; not changed much