The decline in the value of the yen in 2014 and 2015 occurred as a result of the Japanese central bank, the Bank of Japan, following an expansionary monetary policy
Investors expected that the result would be lower nominal Japanese interest rates and a higher inflation rate. In response, investors ________, causing the value of the yen to decline against the dollar.
A) bought Japanese yen and sold U.S. dollars B) bought Japanese yen and bought U.S. dollars
C) sold Japanese yen and bought U.S. dollars D) sold Japanese yen and sold U.S. dollars
C
You might also like to view...
Classical growth theory predicts that in the long run there will be
A) sustained increases in the productivity growth rate. B) negative economic growth. C) zero economic growth. D) positive economic growth. E) sustained increases in economic growth.
Erbia can produce either 18 pounds of oranges or 9 pounds of apples an hour, while Glassen can produce either 16 pounds of oranges or 4 pounds of apples an hour. Which of the following terms of trade between apples and oranges would allow both Erbia and Glassen to gain from specialization and exchange?
a. 1 pound of oranges for 0.2 pounds of apples b. 2 pounds of apples for 3 pounds of oranges c. 3 pounds of apples for 3 pounds of oranges d. 1 pound of apple for 3 pounds of oranges
The authors open Chapter 17 with a contrast between the Fed's actions in response to the terrorist attacks of September, 2001 and its response to the financial crisis of the Great Depression. Why was the Fed successful at dealing with the crisis in 2001, and not as successful with the crisis of the early 1930s?
What will be an ideal response?
When measuring economic growth, economists typically focus on per capita real GDP in order to account for variations in the:
a. size of the population
b. price level
c. quality of goods and services
d. both (a) and (b) above