An Increase in the Foreign Real Interest Rate Will Tend

question 87

Multiple Choice

An increase in the foreign real interest rate will tend to cause,other things the same ________.

• A)individuals to hold fewer dollar assets
• B)an increase in the return on dollar assets relative to foreign assets
• C)an appreciation in the value of the U.S.dollar
• D)an increase in the demand for dollars

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Definitions:

Opportunity

A set of circumstances that makes it possible to do something or for something to happen.

External Customers

Individuals or entities that purchase goods or services from a business but are not part of the organization.

Internal Counterparts

The elements within an individual or system that correspond to or are analogous with external or opposing elements.

Directly

In a straight line or manner, without any intervening space, time, or substance.