Suppose the interest rates in both Japan and the United States rise, but the Japanese interest rate rises more than the U.S. interest rate does. As a result, international investors will

Question

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When interest rates in a country rise relative to those in another country, the higher interest rates make financial assets in the country with the rising rates more attractive to investors, as they can earn a higher return. In this scenario, since Japanese interest rates rise more than those in the U.S., Japanese financial assets become more attractive to international investors.

Suppose the Interest Rates in Both Japan and the United