Initially, the real interest rates in the United States and Japan are equal to 7 percent. The real interest rate in the United States increases to 8 percent while the real interest rate in Japan decreases to 6 percent. How and why will capital flows be affected by this change in real interest rates

There would be a flow of capital from Japan to the United states

Explanation:

Real interest rate is interest rate adjusted for inflation.

If the real interest rate becomes higher in the US compared to Japan, it means that investors would earn a higher return on investment if they invest in  the US compared to Japan. Since the aim of most investors is to earn maximum profit, there would be a flow of capital to the US

his average speed in km per hour is ≈ 55.4 km/h and about 15.4 m/s.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy