An increase in the exchange rate value of the U.S. dollar, relative to the Japanese yen, will cause U.S. imports from Japan to
A) increase and exports to Japan to decrease.
B) increase and exports to Japan to increase.
C) decrease and exports to Japan to decrease.
D) decrease and exports to Japan to increase.

Question

Quizplus · Accepted Answer

An increase in the exchange rate value of the U.S. dollar makes Japanese goods cheaper for U.S. consumers, leading to an increase in imports from Japan. Conversely, U.S. goods become more expensive for Japanese consumers, leading to a decrease in exports to Japan.

An Increase in the Exchange Rate Value of the U