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While the Federal Reserve Has Kept Interest Rates at Historic

Question 108

Multiple Choice

While the Federal Reserve has kept interest rates at historic lows,many foreign central banks have begun to tighten monetary policy by raising interest rates.These actions will


A) weaken these foreign currencies relative to each other.
B) cause the dollar to appreciate relative to these foreign currencies.
C) cause the foreign currencies to depreciate relative to the dollar.
D) strengthen these foreign currencies relative to the dollar.

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