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Japan cuts Interest rates

Read the article BOJ Steps Up Asset Purchases, Lowers Benchmark Interest Rate (you can do this in the window below or follow the previous link to read the article in a separate window) and then consider answers to the questions below.


Question 1

Define the following terms:

  • Deflation
  • Interest rates.

Question 2

Explain how a change in the Japanese interest rates can influence the value of the Yen

Question 3

Evaluate the impact that the change in the Japanese interest rate will have on both Japanese and US businesses.