If Japanese Real Interest Rates Fall Relative to Real Interest

question 87

True/False

If Japanese real interest rates fall relative to real interest rates in the U.S.,the yen will likely appreciate and the dollar will likely depreciate.

---

Definitions:

Capacity Utilization Rate

The percentage of a firm's total potential production capacity that is actually being utilized in the production of goods or services.

Manufacturing Firms

Companies engaged in the industrial process of converting raw materials into finished products through human labor and machinery.

Disposable Income

The disposable income households have for expenditures and savings, post-income taxation.

C + I

A formula component in macroeconomics representing total private consumption (C) plus total private investment (I).