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:

Not-for-profit Organizations

entities that operate for purposes other than making a profit, often focusing on social, educational, humanitarian, or cultural objectives.

For-profit Companies

For-profit companies are businesses that operate with the primary goal of earning financial profit for their owners or shareholders.

Conglomerate Merger

A type of merger where two or more companies in unrelated business activities or industries combine their operations.

Public Ownership

Ownership of assets or organizations by the government or other public bodies rather than private individuals or companies.