If the Fed Announces That It Will Decrease the U

question 27

Multiple Choice

If the Fed announces that it will decrease the U.S. interest rates, and European Central Bank takes no action, then the value of euro will ____ against the value of U.S. dollar. The Fed's action is called ____ intervention.

• A) appreciate; direct
• B) depreciate; direct
• C) appreciate; indirect
• D) depreciate; indirect