If the US Interest Rate Differential Increases, in the Foreign Exchange Market

question 170

Multiple Choice

If the U.S. interest rate differential increases, in the foreign exchange market the demand for U.S. dollars ________ and the supply of U.S. dollars ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Die

To cease living; the end of life in organisms.

Association

In psychology, refers to a connection or link between two ideas, events, or psychological phenomena, suggesting a relationship where one may influence or evoke the other.

Neuroticism

A personality trait characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.

Illness

A state of being unwell or suffering from a disease or health condition.