The prices of American goods exported to japan will increase.
What do you understand by exchange rate?
The value of one country's currency in comparison to another. When nations employ gold or another accepted standard, and each currency is worth a particular amount of the metal or other standard, the exchange rate is "fixed."
What determines the exchange rate?
The market dynamics of supply and demand for foreign exchange often determine exchange rates. The US dollar, the euro of the euro region, the Japanese yen, and the British pound sterling have all employed floating exchange rates as their system of choice for many years.
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