If a Japanese Bank Is Paying 2% Interest on Savings

question 40

Multiple Choice

If a Japanese bank is paying 2% interest on savings and an American bank is paying 4% interest, the demand for dollars will _____, and the dollar will:

• A) decrease; depreciate.
• B) decrease; appreciate.
• C) increase; depreciate.
• D) increase; appreciate.

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Definitions:

Symbolic Interactionism

A sociological perspective focusing on the ways in which individuals interpret and give meaning to social symbols, interactions, and experiences.

Cultural Relativism

The belief that an individual's cultural norms and practices ought to be the lens through which their actions and beliefs are viewed by others.

Norms

Socially accepted rules or standards that govern the behavior of members within a society or group, outlining what is considered acceptable or unacceptable.

Value System

A coherent set of values adopted and/or evolved by a person, organization, or society as a guideline in making decisions.