If Foreign Exchange Traders Become Convinced That the Value of the Yen

question 9

Multiple Choice

If foreign exchange traders become convinced that the value of the yen will rise against the dollar in the future, the likely result is that

• A)demand for the yen will fall in anticipation.
• B)the current value of the yen against the dollar will rise.
• C)the current value of the yen against the dollar will fall.
• D)nominal interest rates in Japan will fall.

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