Relative to the yen, from 2007-2012 the U.S. dollar
A) appreciated due to an increase in the interest rate differential and expectations of a higher future exchange rate.
B) appreciated due to a decrease in the interest rate differential and expectations of a lower future exchange rate.
C) depreciated due to an increase in the interest rate differential and expectations of a higher future exchange rate.
D) depreciated due to a decrease in the interest rate differential and expectations of a lower future exchange rate.
D
You might also like to view...
Explain how the government can help the economy avoid a coordination failure
What will be an ideal response?
From 1789 to 1838, state banks
(a) served as financial intermediations and paid out paper money to borrowers. (b) were corporations. (c) engaged in agricultural activities. (d) established demand deposits against which checks could be written by the borrower.