Suppose Japan Runs a Trade Deficit

Multiple Choice

Suppose Japan runs a trade deficit.Other things equal, if the Japanese yen appreciates against other currencies in the exchange markets, this will

A) have no effect on the Japanese balance of trade.
B) tend to improve the Japanese balance of trade because Japanese imports will become more expensive.
C) tend to worsen the Japanese balance of trade because Japanese exports will become cheaper.
D) None of these is correct.