Suppose that the exchange rate between Japanese yen and U.S. dollars is originally 130 yen to the dollar. If it then changes to 150 yen to the dollar, exports of U.S. goods to Japan will tend to:

Question

Quizplus · Accepted Answer

With a stronger yen, U.S. goods become relatively more expensive for Japanese consumers. Therefore, exports of U.S. goods to Japan are likely to fall.

Suppose That the Exchange Rate Between Japanese Yen and U