Other things remaining unchanged, if American exports to Japan increase and American imports from Japan decrease, then under a floating exchange-rate system, we would expect
A. the yen value of a U.S. dollar to be higher in Tokyo than in New York.
B. the U.S. dollar to appreciate.
C. the supply curve of Japanese yen to shift inward.
D. the demand for Japanese yen to increase in the foreign exchange market.
Answer: B
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