Suppose the interest rate in Canada falls and the interest rate in Japan remains the same.Interest rate parity implies that given equal risk,
A)the yen is expected to appreciate against the dollar.
B)the yen is expected to depreciate against the dollar.
C)Canadian financial investments are less profitable.
D)Japanese financial investments are more profitable.
E)the inflation rate is higher in Japan.

Question

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The Answer of Suppose the interest rate in Canada falls and the interest rate in Japan remains the same.Interest rate parity implies that given equal risk,
A)the yen is expected to appreciate against the dollar.
B)the yen is expected to depreciate against the dollar.
C)Canadian financial investments are less profitable.
D)Japanese financial investments are more profitable.
E)the inflation rate is higher in Japan.

Suppose the Interest Rate in Canada Falls and the Interest