If Real Interest Rates in Japan Fall Relative to Real

Multiple Choice

If real interest rates in Japan fall relative to real interest rates in the United States,the yen will likely __________ in terms of the dollar and the dollar will likely __________ in terms of the yen.

A) appreciate; depreciate
B) depreciate; appreciate
C) remain unaffected; remain unaffected
D) remain unaffected; appreciate
E) remain unaffected; depreciate