The USReal Interest Rate Rises Relative to Japan's

question 67

Multiple Choice

The U.S.real interest rate rises relative to Japan's.As a result,

• A) the yen will depreciate and the dollar will appreciate.
• B) the yen will appreciate and the dollar will depreciate.
• C) both the dollar and the yen will depreciate.
• D) both the dollar and the yen will appreciate.

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Definitions:

Least-Cost Combination

An economic principle where firms seek to minimize their costs of production by using the most efficient combination of resources.

Inputs

The inputs including workforce, materials, and financial investment employed in the process of manufacturing products or delivering services.

Marginal Revenue Products

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product, including raw material, labor, and overhead costs.