An Increase in the Interest Rate in the United States

question 320

Multiple Choice

An increase in the interest rate in the United States compared to the interest rate in Great Britain will

• A) increase the U.S. interest rate differential.
• B) increase the demand for pounds.
• C) shift the demand curve for dollars rightward.
• D) Both answers A and C are correct.

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Definitions:

Divisional Structure

A type of organizational structure where operations are grouped based on distinct products or services, serving different markets.

Duplication

Reproduction or copying of a process, product, or service in order to achieve redundancy or increase capacity.

Underutilization

The condition of not using resources, skills, or talents to their full potential, often within a workforce context.

Centralized

Refers to the system or organization where decision-making authority is concentrated at a high or singular point, often to maintain control and uniformity.