If Real Interest Rates in the United States Rise Relative

question 62

Multiple Choice

If real interest rates in the United States rise relative to real interest rates in other countries, other things being equal,

• A)​the exchange value of the dollar would decline relative to other currencies.
• B)​the exchange value of the dollar would increase relative to other currencies.
• C)​there would likely be no effect on the exchange value of the dollar relative to other currencies.
• D)​there would be an indeterminate effect on the exchange value of the dollar relative to other currencies.

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Definitions:

Caring

Exhibiting kindness and concern for others.

Compassionate

Showing sympathy and concern for the sufferings or misfortunes of others, often accompanied by a desire to help.

Self-Esteem

Someone's perception of their own value or self-worth.

Hispanic Americans

Americans who have origins in the Spanish-speaking countries of Latin America or Spain itself.