If the USInterest Rate Rises Relative to the Foreign Interest Rate, Then

question 133

Multiple Choice

If the U.S.interest rate rises relative to the foreign interest rate, then in the foreign exchange market

• A) the demand for dollars increases, and the supply of dollars increases.
• B) the demand for dollars increases, and the supply of dollars decreases.
• C) the demand for dollars decreases, and the supply of dollars increases.
• D) the demand for dollars decreases, and the supply of dollars decreases.

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