Other Things Remaining the Same, the U

question 181

Multiple Choice

Other things remaining the same, the U.S. interest rate differential increases if the U.S. interest rate

• A) rises and foreign interest rates remain constant.
• B) falls and foreign interest rates remain constant.
• C) falls and foreign interest rates rise.
• D) remains constant and foreign interest rates rise.

---

Definitions:

Government

The system or group of people governing an organized community, often a state.

Sellers

Individuals or entities that offer goods or services in exchange for payment.

Price Ceiling

A legally imposed limit on how high a price can be charged for a product, service, or resource.

Quantity Demanded

The total amount of a goods or services consumers are willing and able to purchase at a specific price point.