If the dollar appreciates relative to the yen, we would expect:

Question

Quizplus · Accepted Answer

When the dollar appreciates relative to the yen, it means that each dollar can buy more yen. This makes Japanese goods cheaper for American consumers, potentially increasing Japanese exports to the U.S. Conversely, American goods become more expensive for Japanese consumers, likely decreasing Japanese imports from the U.S. Therefore, both the Japanese trade surplus with the U.S. could increase, and Japanese imports from the U.S. could decrease.

If the Dollar Appreciates Relative to the Yen, We Would