S Interest Rates Suddenly Become Much Higher Than European Interest

question 57

Multiple Choice

S. interest rates suddenly become much higher than European interest rates (and if this does not cause concern about higher inflation in the United States) , the U.S. demand for euros would____, and the supply of euros to be exchanged for dollars would ____, other factors held constant.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Purchase Transactions

Financial exchanges or agreements where goods or services are bought and paid for.

Strategic Supply Management

The process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible.

Make

The decision process involved in determining whether to produce an item internally or buy it from an external supplier.

Buy

The action of acquiring ownership or the right to use a product or service through payment or exchange.