If the Federal Reserve Decreases Interest Rates in the United

Multiple Choice

If the Federal Reserve decreases interest rates in the United States relative to interest rates in other countries, then in the foreign exchange market

A) the demand for dollars increases, and the supply of dollars increases.
B) the demand for dollars increases, and the supply of dollars decreases.
C) the demand for dollars decreases, and the supply of dollars increases.
D) the demand for dollars decreases, and the supply of dollars decreases.