If Japan runs current account deficit and exchange rates are floating?

Question

If Japan runs current account deficit and exchange rates are floating?

Answer 1

A. Japanese exports become more expensive to foreign buyers
B. Japanese exports become less expensive for foreign buyers
C. Japanese imports become less expensive for German buyers
D. Japanese imports become more prestigious to German buyers

Correct Answer: Japanese exports become less expensive for foreign buyers ✔

Last Updated: December 20, 2019