For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?

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The United States to Japan causing the dollar to appreciate

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The United States to Japan causing the dollar to depreciate

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The Japan to United States, causing the dollar to depreciate

TuteeHUB · Answer

The Japan to United States, causing the dollar to appreciate

1.	For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?
A.	The United States to Japan causing the dollar to depreciate
B.	The United States to Japan causing the dollar to appreciate
C.	The Japan to United States, causing the dollar to depreciate
D.	The Japan to United States, causing the dollar to appreciate
Answer» B. The United States to Japan causing the dollar to appreciate

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