If the dollar depreciates against the yen,this tends to ________ our imports of Japanese goods and ________ our exports of goods to Japan,so that our net exports ________.

Question

Quizplus · Accepted Answer

When the dollar depreciates against the yen, it becomes relatively cheaper for American consumers to buy Japanese goods, therefore increasing our imports of Japanese goods. On the other hand, it becomes relatively more expensive for Japanese consumers to buy American goods, leading to a decrease in our exports to Japan. As a result, our net exports decrease.

If the Dollar Depreciates Against the Yen,this Tends to ________