If interest rates are raised in Japan,U.S.investors will be inclined to ________ Japanese financial assets,________ the value of the Japanese yen relative to other currencies.

Question

Quizplus · Accepted Answer

When interest rates are raised in Japan, U.S. investors will be more inclined to buy Japanese financial assets due to the higher returns they can now earn. This increased demand for Japanese financial assets requires converting other currencies into yen, thus raising the value of the yen relative to other currencies.

If Interest Rates Are Raised in Japan,U