When the U.S. dollar depreciates relative to the Japanese currency, the yen, products that are produced by U.S. companies and exported to Japan:
A) become less expensive in Japan.
B) become more expensive in Japan.
C) are not impacted by price changes.
D) do not affect purchasing power in Japan.

Question

Quizplus · Accepted Answer

When the U.S. dollar depreciates relative to the yen, it means that each dollar buys fewer yen. Therefore, products priced in dollars become cheaper in yen terms, making U.S. exports less expensive for Japanese consumers.