If the Fed Is Using Policy to Combat Inflation,what Is

question 53

Multiple Choice

If the Fed is using policy to combat inflation,what is likely to happen in the foreign exchange market and to the foreign exchange value of the dollar?

• A)The demand for the dollar will increase and the foreign exchange value of the dollar will rise.
• B)The demand for the dollar will decrease and the foreign exchange value of the dollar will rise.
• C)The demand for the dollar will increase and the foreign exchange value of the dollar will fall.
• D)The demand for the dollar will decrease and the foreign exchange value of the dollar will fall.

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