The Decline in the Value of the Yen After 2012

Multiple Choice

The decline in the value of the yen after 2012 occurred as a result of the Japanese central bank,the Bank of Japan,following an expansionary monetary policy.Investors expected that the result would be lower nominal Japanese interest rates and a higher inflation rate.In response,investors ________,causing the value of the yen to decline against the dollar.

A) sold Japanese financial assets and bought U.S.financial assets
B) sold Japanese financial assets and sold U.S.financial assets
C) bought Japanese financial assets and sold U.S.financial assets
D) bought Japanese financial assets and bought U.S.financial assets