The U.S. real interest rate rises relative to Japan's. As a result,
A) the yen will depreciate and the dollar will appreciate.
B) the yen will appreciate and the dollar will depreciate.
C) both the dollar and the yen will depreciate.
D) both the dollar and the yen will appreciate.
A
You might also like to view...
The "gold-standard" is a system in which:
A) gold mining firms own the right to print currency. B) people use gold as a medium of exchange. C) paper currency is backed by gold. D) gold is imported into the U.S. in exchange of paper currency.
All of the following are likely to be effective at eliminating a recessionary gap except one. Which is the exception?
a. Reducing Social Security payments to beneficiaries b. Reducing personal income taxes c. Increasing government expenditures on the interstate highway network d. Increasing farm subsidies e. Reducing corporate income taxes