If the USAnd Japan Engage in Much Financial Flows but Little Trade,_______

Multiple Choice

If the U.S.and Japan engage in much 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 differ entials
D) interest rate differentials;inflation and income differ entials
E) inflation and income differentials;interest rate differ entials