An appreciating yen makes Japanese products
A)more expensive in foreign markets.
B)less expensive in foreign markets.
C)more expensive in the Japanese market.
D)more expensive in both foreign markets and the Japanese market.
E)more popular outside Japan.

Question

Quizplus · Accepted Answer

An appreciating yen means that the value of the Japanese currency is increasing relative to other currencies. As a result, Japanese products become more expensive in foreign markets as it takes more foreign currency to purchase the same amount of yen. This can cause a decrease in demand for Japanese exports, which can have negative effects on the Japanese economy.

An Appreciating Yen Makes Japanese Products