In the 1980s, Japan had a significant trade surplus. The G-7 nations wanted Japan to reduce its trade surplus, and therefore they pressured the Japanese government to:
A)devalue the yen.
B)strengthen the yen.
C)keep the yen fixed.
D)control inflation.

Question

Quizplus · Accepted Answer

The G-7 nations pressured Japan to strengthen the yen to reduce its trade surplus. A stronger yen would make Japanese exports more expensive and imports cheaper, thus reducing the trade surplus.

In the 1980s, Japan Had a Significant Trade Surplus