Suppose That There Are Only Two Countries,the U

Multiple Choice

Suppose that there are only two countries,the U.S.and Japan.If real interest rates rise in Japan,which of the following is NOT true?

A) More Japanese yen will be supplied in exchange for dollars.
B) More U.S. dollars will be supplied in exchange for yen.
C) The volume of yen traded will increase.
D) Japanese borrowers will be worse off.