If Japan adopts an expansionary monetary policy, U.S. exports are likely to increase.

Question

Quizplus · Accepted Answer

An expansionary monetary policy in Japan typically leads to a depreciation of the yen relative to other currencies, such as the U.S. dollar. This makes Japanese goods cheaper for foreign buyers and foreign goods more expensive in Japan, potentially increasing demand for U.S. exports as they become relatively cheaper for Japanese consumers and businesses.

If Japan Adopts an Expansionary Monetary Policy, U