(Figure: the Domestic Interest Rate) Using the Graph, If I_€

Multiple Choice

(Figure: The Domestic Interest Rate) Using the graph, if i_€ falls, the result is:

A) the dollar interest rate line shifts up and the spot rate rises.
B) the dollar interest rate line shifts down and the spot rate rises.
C) the foreign return line shifts up and to the right and the spot rate rises.
D) the foreign return line shifts down and to the left and the spot rate falls.