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:

Placebo Effect

A phenomenon in which a person experiences a physiological or psychological improvement after being given a treatment with no therapeutic effect, due to their belief in the treatment's efficacy.

Breathing Exercise

Practices or techniques focused on controlling the breath, used for relaxation, stress management, or improving respiratory health.

Stressful Situation

Any circumstance or event that causes significant anxiety, pressure, or stress, challenging an individual's ability to cope.

Spontaneous Improvements

The unexpected or unplanned enhancements in performance or conditions without specific intervention.