In the 1990s, the price level in Japan fell relative to the price level in the United States. If the exchange rate did not change, one would expect that:
A. both U.S. exports to Japan and U.S. imports from Japan would rise.
B. U.S. exports to Japan would decline and U.S. imports from Japan would rise.
C. both U.S. exports to Japan and U.S. imports from Japan would fall.
D. U.S. exports to Japan would rise and U.S. imports from Japan would decline.
Answer: B
Economics
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