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If Inflation in the United States Is Higher Than in Japan,what

Question 131

Multiple Choice

If inflation in the United States is higher than in Japan,what will happen to the exchange rate between the U.S.dollar and the Japanese yen?


A) The dollar and yen will both depreciate.
B) The dollar and yen will both appreciate.
C) The dollar will depreciate and the yen will appreciate.
D) The dollar will appreciate and the yen will depreciate.

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