Multiple Choice
Holding all else constant, higher interest rates in the United States would ________ the demand for U.S.dollars in the foreign exchange market.In turn, this will lead to a(n) _______ in the exchange rate, and subsequently, U.S.net exports would _______.
A) decrease; decrease; rise
B) increase; increase; fall
C) increase; decrease; rise
D) decrease; increase; fall
Correct Answer:
Verified
Correct Answer:
Verified
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