Appreciation of the Japanese yen will lead to a significant balance of trade surplus.

Question

Quizplus · Accepted Answer

Appreciation of the Japanese yen will lead to a significant balance of trade deficit because with a strong yen, Japanese exports become more expensive for foreign buyers, which can lead to a decrease in demand for Japanese products. Meanwhile, imports become cheaper for Japanese buyers, increasing their demand for imported goods, which can lead to an increase in imports and a decrease in exports, ultimately leading to a trade imbalance.

Appreciation of the Japanese Yen Will Lead to a Significant