If the US and Japan Engage in Substantial Financial Flows but Little

question 41

Multiple Choice

If the U.S. and Japan engage in substantial financial flows but little trade, ____ directly influences their exchange rate the most. If the U.S. and Switzerland engage in much trade but little financial flows, ____ directly influences their exchange rate the most.

• A) interest rate differentials; interest rate differentials
• B) inflation and interest rate differentials; interest rate differentials
• C) income and interest rate differentials; inflation differentials
• D) interest rate differentials; inflation and income differentials
• E) inflation and income differentials; interest rate differentials

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Definitions:

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels and are primarily responsible for night vision and peripheral vision.

Peripheral Vision

The ability to see objects and movement outside of the direct line of vision.

Daytime Vision

The ability to see during daylight hours, primarily utilizing the photopic vision system, which is sensitive to bright light.

Colour Vision

The ability of the visual system to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.