When Japanese Interest Rates Rise, and If Exchange Rate Expectations

question 3

Multiple Choice

When Japanese interest rates rise, and if exchange rate expectations remain unchanged, the most likely effect is that the supply of loanable funds provided by Japanese investors to the United States will ____, and the U.S. interest rates will ____.

• A)increase; increase
• B)increase; decrease
• C)decrease; decrease
• D)decrease; increase

---

Definitions:

Oxygenation

The process of adding oxygen to the body’s tissues, essential for cellular metabolism and energy production.

Blood Ph

The measure of the acidity or alkalinity of the blood, with a normal range being slightly alkaline at about 7.35 to 7.45 on the pH scale.

Carbon Dioxide

A gas without color or smell, generated through the combustion of carbon-based substances and the respiratory process, which naturally occurs in the atmosphere and is taken in by plants during the process of photosynthesis.

Thyroid Cartilage

The largest cartilage in the larynx, often more prominent in males and commonly known as the Adam's apple, offering protection and supporting vocal function.