the U.S. trade balance with Japan is expected to go from a deficit this year to a surplus next year, the forward rate on yen would
A) be less than the spot rate
B) be higher than the spot rate
C) equal the spot rate
D) could be either above or below the spot rate

Question

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The Answer of the U.S. trade balance with Japan is expected to go from a deficit this year to a surplus next year, the forward rate on yen would
A) be less than the spot rate
B) be higher than the spot rate
C) equal the spot rate
D) could be either above or below the spot rate

The US Trade Balance with Japan Is Expected to Go from from a Deficit