Holding Everything Else Unchanged, Higher Interest Rates in the U

question 51

Multiple Choice

Holding everything else unchanged, higher interest rates in the U.S.

• A) increase the demand and reduce the supply of dollars leading to an increase in the exchange rate.
• B) decrease the demand and the supply of dollars leading to an decrease in the exchange rate.
• C) increase the demand and the supply of dollars leading to an increase in the exchange rate.
• D) decrease the demand and increase the supply of dollars leading to a decrease in the exchange rate.