Multiple Choice
Other things the same, which of the following would cause the exchange rate to rise?
A) both an increase in the interest rate and an increase in foreign demand for U.S. goods and services.
B) an increase in the interest rate, but not an increase in foreign demand for U.S. goods and services.
C) an increase in foreign demand for U.S. goods and service, but not an increase in the U.S. interest rate.
D) neither an increase in the U.S. interest rate nor an increase in the demand for U.S. goods and services.
Correct Answer:

Verified
Correct Answer:
Verified
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