From a trade basis, if U.S. trade deficit with Japan continues, and if U.S. inflation rates exceed those in Japan,
A) the yen is likely to appreciate moving from 110 yen per dollar to 120 yen per dollar.
B) the yen is likely to appreciate moving from 120 yen per dollar to 110 yen per dollar.
C) the yen is likely to depreciate moving from 120 yen per dollar to 110 yen per dollar.
D) the yen is likely to depreciate moving from 110 yen per dollar to 120 yen per dollar.
Correct Answer:
Verified
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