Author Question: Suppose that there are only two countries, the U.S. and Japan. If real interest rates rise in Japan, ... (Read 125 times)

joblessjake · **on:** Jun 30, 2018

Suppose that there are only two countries, the U.S. and Japan. If real interest rates rise in Japan, which of the following is NOT true?

A) More Japanese yen will be supplied in exchange for dollars.
B) More U.S. dollars will be supplied in exchange for yen.
C) The volume of yen traded will increase.
D) Japanese borrowers will be worse off.

Question 2

Which of the following is true?

A) A country experiencing a debt or currency crisis would contact the World Trade Organization.
B) The World Trade Organization was formed at the Bretton Woods conference.
C) The General Agreement on Tariffs and Trade created the World Trade Organization in the negotiations and treaty known as the Uruguay Round.
D) The World Trade Organization has no power to resolve trade disputes and to enforce their resolution.