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Minnesota Co$.$ is a U$.$S$.$ firm that exports computer parts to Japan. Its main competition is from firms that are based in Japan, which invoice their products in yen. Minnesota's exports are invoiced in U$.$S$.$ dollars. The prices charged by Minnesota and its competitors will not change during the next year. Will Minnesota's revenue increase or decrease if the spot rate of the yen appreciates over the next year? Briefly explain.

The revenue will $-$Select$-$increasedecreaseItem $1,$ since the demand by Japanese customers for Minnesota's products should $-$Select$-$increasedecreaseItem $2.$ Japanese customers can purchase dollars with $-$Select$-$fewermoreItem $3$ yen and therefore can purchase the products exported by Minnesota at a $-$Select$-$lowerhigherItem $4$ cost$.$