If the interest rate in the U.S.rises, U.S.financial assets become ______ attractive to buyers and the ______ U.S.dollars will rise.
A)more; demand for
B)more; supply of
C)less; demand for
D)less; supply of

Question

Quizplus · Accepted Answer

When U.S. interest rates rise, U.S. financial assets offer higher returns, making them more attractive to buyers. This increased attractiveness leads to a higher demand for U.S. dollars as investors exchange their currency for dollars to purchase these assets.

If the Interest Rate in the U