Question

In order to compensate for an expected future decline in the Japanese yen relative to the U.S. dollar, the interest rate in Japan must be ______ the interest rate in the United States.

Answer 1

higher than

Step-by-step explanation:

An increased interest rate of the Japanese yen will help to strengthen the yen against the dollar.

This means that increased interest rates bring out higher gains which strengthen the currency of japan as against the on of the united states.

Cheers.