Multiple Choice
The U.S.interest rate minus the foreign interest rate is called the U.S.interest rate differential.The U.S.interest rate differential would increase if
A) the U.S. interest rate decreases, and the foreign interest rate remains constant.
B) the U.S. interest rate decreases, and the foreign interest rate increases.
C) the U.S. interest rate increases, and the foreign interest rate increases.
D) the U.S. interest rate increases, and the foreign interest rate decreases.
Correct Answer:

Verified
Correct Answer:
Verified
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