If the Real Interest Rate in the U

Multiple Choice

If the real interest rate in the U.S. increases relative to the real interest rate in Japan then:

A) more capital will flow from the U.S. to Japan causing the dollar to appreciate.
B) more capital will flow from the U.S. to Japan causing the dollar to depreciate.
C) more capital will flow from Japan to the U.S. causing the dollar to appreciate.
D) more capital will flow from Japan to the U.S. causing the dollar to depreciate.