If Interest Rates Rise in the United States Relative to the Rest

question 22

Multiple Choice

If interest rates rise in the United States relative to the rest of the world,the demand for U.S.dollars will ________ because there is greater demand for assets with ________ returns.

• A) decrease; higher
• B) decrease; lower
• C) increase; higher
• D) increase; lower
• E) increase; diminishing marginal