The Decline in the Value of the Yen in 2014

Multiple Choice

The decline in the value of the yen in 2014 and 2015 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 yen and bought U.S.dollars
B) sold Japanese yen and sold U.S.dollars
C) bought Japanese yen and sold U.S.dollars
D) bought Japanese yen and bought U.S.dollars