A Rise in World Real Interest Rates Relative to U

question 91

Multiple Choice

A rise in world real interest rates relative to U.S. interest rates

• A)will have no effect on the demand for dollar-denominated assets because investors always prefer dollar-denominated assets.
• B)will have no effect on the demand for dollar-denominated assets but will cause a decrease in the demand for assets denominated in other currencies.
• C)will have no effect on the demand for dollar-denominated assets but will cause an increase in the demand for assets denominated in other currencies.
• D)will cause international investors to increase their demand for dollar-denominated assets.
• E)will cause international investors to decrease their demand for dollar-denominated assets.

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Definitions:

Intrapersonal Processes

Internal psychological processes that involve thoughts and feelings within an individual, affecting their behavior and attitudes.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behaviors, thoughts, and emotions.

Consistent Behavior

Actions that are regular, predictable, and stable over time, contributing to perceptions of reliability and integrity.