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    Macroeconomics Study Set 60
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    Exam 13: The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime
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    In Order to Compensate for an Expected Future Decline in the Japanese
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In Order to Compensate for an Expected Future Decline in the Japanese

Question 18

Question 18

Multiple Choice

In order to compensate for an expected future decline in the Japanese yen relative to the dollar, the interest rate in Japan must be _____ the interest rate in Canada.


A) higher than
B) lower than
C) equal to
D) fixed relative to

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