How Would Monetary Easing by the Bank of Japan Affect

question 101

Multiple Choice

How would monetary easing by the Bank of Japan affect the value of the yen?

• A)It increases it since more people will take out loans at the low interest rates.
• B)It reduces it since it reduces demand for yen since Japanese interest rates are now lower.
• C)It increases it since it increases demand for yen since Japanese interest rates are now higher.
• D)It reduces it since the supply of yen on the foreign exchange market is now lower.

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