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QUESTION 20 According to the international Fisher effect, if the U.S. dollar interest rate is 4% higher than a comparable Japanese yen interest rate, then

QUESTION 20

According to the international Fisher effect, if the U.S. dollar interest rate is 4% higher than a comparable Japanese yen interest rate, then the market expects the _________ to _________.

a.

yen; appreciate by about 4%

b.

yen; depreciate by about 4%

c.

dollar; appreciate by about 4%

d.

U.S. dollar; remain unchanged

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