An Increase in the U.S.interest Rate

question 10

Multiple Choice

An increase in the U.S.interest rate

• A)raises the opportunity cost of holding dollars.
• B)induces households to increase consumption.
• C)shifts money demand to the right.
• D)leads to a depreciation of the U.S.dollar.

---

Definitions:

Dorsolateral Prefrontal

An area of the prefrontal cortex involved in executive functions such as working memory, cognitive flexibility, planning, inhibition, and abstract reasoning.

Visual Memory

The ability to remember or recall information such as objects, symbols, or scenes, processed by the visual system.

Left Frontal

Pertaining to the left front part of the brain, which is associated with functions such as reasoning, planning, parts of speech, and movement.

Right Temporal

Pertains to the area in the brain's temporal lobe on the right hemisphere, often associated with visual memory, processing of music, and spatial navigation skills.