Use the Following to Answer Questions

question 385

Multiple Choice

Use the following to answer questions:
Suppose that the interest rate in Canada is 4%,in Japan it is 7%,and financial assets in the two countries are equal in risk.
-(Scenario: Japan and Canada) Refer to Scenario: Japan and Canada.Suppose that the interest rate in Canada is 4%,in Japan it is 7%,and financial assets in the two countries are equal in risk.Assuming that loans in Japan and Canada carry equal risk,this implies that:

• A) Canadian lenders will lend to Japanese borrowers.
• B) Japanese lenders will lend to Canadian borrowers.
• C) the interest rate in Japan will increase further as compared to the Canadian interest rate.
• D) the central bank of Japan has adopted a more expansionary monetary policy.

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Definitions:

Food Foragers

Food foragers are individuals or groups who sustain themselves by collecting wild plants, hunting animals, and gathering other food resources available in their environment.

Food Production

The process that involves growing crops and raising livestock for human consumption.

Paleolithic Villages

Early human settlements dating from the Paleolithic era, characterized by simple structures and tools, and a hunter-gatherer way of life.

Toolmaking

The process of creating instruments or devices that can be used to perform functions, traditionally associated with human development.