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QUESTION

suppose the exchange rate between dollars and yen is 1 dollar to 100 yen and then Japan runs a higher rate of interest than America. Before the

suppose the exchange rate between dollars and yen is 1 dollar to 100 yen and then Japan runs a higher rate of interest than America. Before the exchange rate adjust. Which of the following is true?

A. there will be a surplus yen in America relative to yen

B. there will be a surplus of yen in america relative to dollars

c. there will be a surplus of dollar in japan.

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