The USinterest Rate Minus the Foreign Interest Rate Is Called the the U.S.interest

question 72

Multiple Choice

The U.S.interest rate minus the foreign interest rate is called the U.S.interest rate differential.The U.S.interest rate differential would increase if

• A) the U.S. interest rate decreases, and the foreign interest rate remains constant.
• B) the U.S. interest rate decreases, and the foreign interest rate increases.
• C) the U.S. interest rate increases, and the foreign interest rate increases.
• D) the U.S. interest rate increases, and the foreign interest rate decreases.

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