Other Things the Same, Which of the Following Would Cause

question 495

Multiple Choice

Other things the same, which of the following would cause the exchange rate to rise?

• A)both an increase in the interest rate and an increase in foreign demand for U.S. goods and services.
• B)an increase in the interest rate, but not an increase in foreign demand for U.S. goods and services.
• C)an increase in foreign demand for U.S. goods and service, but not an increase in the U.S. interest rate.
• D)neither an increase in the U.S. interest rate nor an increase in the demand for U.S. goods and services.

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