If Foreign Interest Rates Are High Relative to Those in the U.S

question 106

Multiple Choice

If foreign interest rates are high relative to those in the U.S. demand for dollars will:

• A) decrease as investors sell their dollars to buy foreign currency for investment abroad.
• B) increase as investors sell their currency to buy dollars for investment.
• C) decrease as investors sell their currency to buy dollars for investment.
• D) increase as investors sell their dollars to buy foreign currency for investment.

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Definitions:

Memory

The capability of the mind to retain and recall information.

Lincoln Penny

A one-cent coin currently minted in the United States, bearing the image of President Abraham Lincoln.

Encoding Failure

A cause of forgetting that occurs when information was never put into long-term memory.

Anterograde Amnesia

A condition in which the ability to create new memories after the event that caused the amnesia is lost, leaving the past memories intact.