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An Increase in the Foreign Interest Rate Causes the Demand

question 121

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An increase in the foreign interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________,everything else held constant.

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Definitions:

Simplify

To make (something) simpler or easier to do or understand.

Algebraic Expression

A mathematical phrase that can contain ordinary numbers, variables (like x or y) and operators (like add, subtract, multiply, and divide).

Trinomial

An expression containing three terms.

Monomial

A mathematical expression consisting of a single term, which may include numbers, variables, and exponents.

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