Use the Following to Answer Questions

question 37

Multiple Choice

Use the following to answer questions .
Exhibit: Exchange Rates
-(Exhibit: Exchange Rates) Suppose interest rates in the U.S. rise relative to interest rates in
Foreign countries. This event will

• A) decrease the demand for dollars and lower the exchange rate.
• B) decrease the supply of dollars and lower the exchange rate.
• C) increase the demand for dollars and raise the exchange rate.
• D) increase the supply of dollars and lower the exchange rate.

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