In the market for yen, a decrease in U.S. real interest rates tends to

Name: In the market for yen, a decrease in U.S. real interest rates tends to
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Question

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A decrease in U.S. real interest rates decreases the return on investment for U.S. investors, making investing in Japan's market a more attractive option. This increased interest in Japan leads to an increase in demand for yen, causing an increase in its equilibrium price.

In the Market for Yen, a Decrease in U