When the Yen appreciates, Japanese exports become more __________, leading to a potential decrease in net exports.

When the Yen appreciates, it means that the value of the Yen increases compared to other currencies. This makes Japanese goods more expensive for people in other countries, which can lead to fewer exports being sold abroad. For example, if a Japanese car that used to cost $20,000 now costs $22,000 for an American buyer due to the stronger Yen, some buyers might choose to buy a car from another country instead. As a result, this can lead to a decrease in the total value of goods that Japan exports, which is referred to as net exports. Therefore, when the Yen appreciates, Japanese exports become more expensive, potentially decreasing net exports.