With Everything Else the Same, in the Foreign Exchange Market

question 311

Multiple Choice

With everything else the same, in the foreign exchange market which of the following increases the of U.S. dollars?
I. a fall in the U.S. interest rate
II. a fall in interest rates in foreign countries
III. a rise in expected future exchange rate

• A) I and III only
• B) I only
• C) I, II, and III
• D) I and II only

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