Which of the following caused a decline in the dollar/yen carry trade during 2008-2009?
A) Increase in risk appetite making the carry trade less attractive
B) Decrease in interest rate differentials as the U.S. rates came down
C) Increase in interest rate differentials as Japanese interest rates came down
D) Decrease in interest rate differentials as the U.S. interest rates went up
E) Decrease in interest rate differentials as the Japanese rates went up
Correct Answer:
Verified
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