Multiple Choice
Other things the same,an increase in the U.S.interest rate causes
A) demand in the market for foreign-currency exchange to increase so the exchange rate increases.
B) demand in the market for foreign-currency exchange to decrease so the exchange rate decreases.
C) supply in the market for foreign-currency exchange to increase so the exchange rate decreases.
D) supply in the market for foreign-currency exchange to decrease so the exchange rate increases.
Correct Answer:
Verified
Correct Answer:
Verified
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