Multiple Choice
A higher U.S.interest rate (i$ ↑) relative to interest rates abroad,ceteris paribus,will result in
A) a stronger dollar.
B) a lower spot exchange rate (expressed as foreign currency per U.S.dollar) .
C) a stronger dollar and a lower spot exchange rate (expressed as foreign currency per U.S.dollar) .
D) none of the options
Correct Answer:
Verified
Correct Answer:
Verified
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