Suppose the exchange rate between Japanese yen and Canadian dollars is originally 130 yen to the dollar.If it then changes to 150 yen to the dollar,what will happen to the imports of Japanese goods into Canada?

Question

Quizplus · Accepted Answer

When the exchange rate changes from 130 yen to 150 yen per Canadian dollar, the Canadian dollar has appreciated relative to the yen. This means that Canadian consumers can now buy more Japanese goods for the same amount of Canadian dollars, making Japanese imports cheaper and likely increasing the imports of Japanese goods into Canada.

Suppose the Exchange Rate Between Japanese Yen and Canadian Dollars