Use the Following to Answer Questions

Use the following to answer questions:
Suppose that the interest rate in Canada is 4%,in Japan it is 7%,and financial assets in the two countries are equal in risk.
-(Scenario: Japan and Canada) Refer to Scenario: Japan and Canada.Suppose that the interest rate in Canada is 4%,in Japan it is 7%,and financial assets in the two countries are equal in risk.Assuming that loans in Japan and Canada carry equal risk,this implies that:

A) Canadian lenders will lend to Japanese borrowers.
B) Japanese lenders will lend to Canadian borrowers.
C) the interest rate in Japan will increase further as compared to the Canadian interest rate.
D) the central bank of Japan has adopted a more expansionary monetary policy.