If Interest Rates Rise in the United States Relative to the Rest

question 22

Multiple Choice

If interest rates rise in the United States relative to the rest of the world,the demand for U.S.dollars will ________ because there is greater demand for assets with ________ returns.

• A) decrease; higher
• B) decrease; lower
• C) increase; higher
• D) increase; lower
• E) increase; diminishing marginal

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Definitions:

Equilibrium

The state in which the concentrations of reactants and products in a reversible chemical reaction are unchanged over time, indicating a balance in the rate of forward and reverse reactions.

Synthetic Route

The planned sequence of chemical reactions used to convert starting materials into desired products in the laboratory or industry.

Reagents

Chemical substances that are employed to bring about a chemical reaction in a provided set of reactants.

Reaction

A process in which substances (reactants) are transformed into different substances (products) through chemical change.