Author Question: Relative to the yen, from 2012-2014 the U.S. dollar A) depreciated due to an anticipated decrease ... (Read 23 times)

asan beg · **on:** Jun 29, 2018

Relative to the yen, from 2012-2014 the U.S. dollar

A) depreciated due to an anticipated decrease in the interest rate differential and expectations of a lower future exchange rate.
B) appreciated due to an anticipated decrease in the interest rate differential and expectations of a lower future exchange rate.
C) depreciated due to an anticipated increase in the interest rate differential and expectations of a higher future exchange rate.
D) appreciated due to an anticipated increase in the interest rate differential and expectations of a higher future exchange rate.

Question 2

In 2010, the United States and foreign economies start to recover from the recession. U.S. firms increase their profit expectations. As a result, the demand for loanable funds curve shifts ________ and the real interest rate ________.

A) leftward; decreases
B) rightward; decreases
C) leftward; increases
D) rightward; increases