Scenario: Japan and the United States

question 435

Multiple Choice

Scenario: Japan and the United States
Suppose that the interest rate in the United States is 4%, in Japan it is 7%, and financial assets in the two countries are equal in risk.

-(Scenario: Japan and the United States) Refer to the scenario Japan and the United States. The implication is that:

• A)interest rates in Japan will increase.
• B)interest rates in the United States will decrease.
• C)the capital flow between Japan and the United States eventually will render the interest rates equal.
• D)the interest rates in both countries will remain unchanged.

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Definitions:

Histogram

A graphical representation of data distribution where data is grouped into ranges and each range's frequency is represented by the height of a bar.

Skewed

Refers to a distribution that is not symmetrical, where one tail is longer or fatter than the other.

Pregnant Women

Females in the state of carrying a developing fetus within their womb.

Histogram

A graphical representation that organizes a group of data points into user-specified ranges, showing the frequency of data in each range.