Suppose currency traders believe that in the future, the United States will experience more rapid inflation than will Japan. The traders ______.

a. also believe that the U.S. dollar will soon appreciate in value
b. will buy more U.S. dollars, pushing up the price
c. holding U.S. dollars will convert them to yen, increasing the demand for yen
d. also believe that Japanese consumers will soon demand more U.S. goods

c. holding U.S. dollars will convert them to yen, increasing the demand for yen

Economics

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