Suppose That the U

Suppose that the U.S. interest rate is 5 percent and the Japanese interest rate is 1 percent. The effect of this difference in the foreign exchange market is that

A) investors expect the yen to appreciate against the dollar.
B) all funds flow to the United States to get the higher interest rate.
C) investors expect the yen to depreciate against the dollar.
D) a Japanese investor is guaranteed to make an additional 4 percent in yen terms by investing in the United States.