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2. Suppose Japanese yen money market annual rate is .60 nd U.S. money market has an annual rate % a of 4.50%. The predictions on
2. Suppose Japanese yen money market annual rate is .60 nd U.S. money market has an annual rate % a of 4.50%. The predictions on the spot rate in 6 months made by financial analysts X and Y are reasonable, why? A) Analysts X, because US dollar interest is higher than Japanese yen, so should appreciate against $ B) Analysts x, because US dollar interest is higher than Japanese yen, so should depreciate against $. C) Analysts Y, because US dollar interest is higher than Japanese yen, so X should depreciate against $. D) Analysts Y, because US dollar interest is higher than Japanese yen, so should appreciate against $ s, which prediction do you think is more
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