If the US Interest Rate Rises While Interest Rates in the Rest

question 144

Multiple Choice

If the U.S. interest rate rises while interest rates in the rest of the world do not change, the higher U.S. interest rate

• A) decreases the demand for dollars.
• B) increases the demand for dollars.
• C) has no effect on the demand for dollars.
• D) will stop all trading between the currencies of the U.S. and other countries.

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