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Ceteris Paribus, a Rise in U.S. Interest Rates

Question 81

Multiple Choice

Ceteris paribus, a rise in U.S. interest rates


A) will cause international investors to decrease their demand for dollar-denominated assets.
B) has no effect on international investors.
C) will cause international investors to increase their demand for dollar-denominated assets
D) will have no effect on dollar-denominated assets but will cause an increase in the demand for yen-denominated assets.
E) will have an uncertain effect on dollar-denominated assets.

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