If the US Interest Rate Differential Increases, in the Foreign Exchange Market

question 441

Multiple Choice

If the U.S. interest rate differential increases, in the foreign exchange market the demand for U.S. dollars __________and the supply of U.S. dollars __________.

• A) decreases; decreases
• B) increases; increases
• C) decreases; increases
• D) increases; decreases

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Competing Business

A business that offers similar services or products as another business, often within the same market or industry, leading to competition.

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