We Start with a 3 Percent Real Interest Rate in the United

Multiple Choice

We start with a 3 percent real interest rate in the United States and in Japan.Next,the real interest rate in Japan falls to 2 percent,and the U.S.real interest remains constant.As a result,

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