If Real Interest Rates in Japan Fall Relative to Real

question 88

Multiple Choice

If real interest rates in Japan fall relative to real interest rates in the United States,the yen will likely __________ in terms of the dollar and the dollar will likely __________ in terms of the yen.

• A) appreciate; depreciate
• B) depreciate; appreciate
• C) remain unaffected; remain unaffected
• D) remain unaffected; appreciate
• E) remain unaffected; depreciate

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