Multiple Choice
If the Federal Reserve raises the U.S. interest rate, foreigners'
A) demand for U.S. dollars will increase and the exchange rate will rise.
B) demand for U.S. dollars will decrease and the exchange rate will fall.
C) demand for U.S. dollars will increase and the exchange rate will fall.
D) demand for U.S. dollars will decrease and the exchange rate will rise.
Correct Answer:
Verified
Correct Answer:
Verified
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