If USInterest Rates Rise While Foreign Interest Rates Remain Unchanged

Multiple Choice

If U.S.interest rates rise while foreign interest rates remain unchanged,

A) GDP will not change since the shift in aggregate supply cancels the positive effects on aggregate demand.
B) the dollar will depreciate and thus reduce prices and output.
C) foreign capital will be attracted to the United States and the dollar will appreciate.
D) net exports will increase and the economy will expand.