Under a floating exchange rate system, an increase in the international demand for electronic appliances manufactured in Japan will result in:

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Under a floating exchange rate system, an increase in the demand for a country's exports will lead to an appreciation of its currency. Therefore, an increase in the international demand for electronic appliances manufactured in Japan will result in an appreciation of the yen vis-à-vis other currencies. It may lead to a decrease in exports due to the increased price of Japanese goods, but there is no evidence that it would cause deflation or deplete international reserves. Additionally, an increase in the trade deficit is also unlikely, as a stronger currency generally makes imports cheaper, which would decrease the trade deficit.

Under a Floating Exchange Rate System, an Increase in the International