Figure 15-1
-Refer to Figure 15-1. Suppose interest rates in the U.S. rise relative to interest rates in Jforeign countries. This event will

Question

Figure 15-1 
-Refer to Figure 15-1. Suppose interest rates in the U.S. rise relative to interest rates in Jforeign countries. This event will

Quizplus · Accepted Answer

When U.S. interest rates rise relative to foreign countries, foreign investors are more likely to invest in U.S. assets to take advantage of higher returns, increasing the demand for dollars and raising the exchange rate.

Figure 15-1 -Refer to Figure 15-1. Suppose Interest Rates in the U.S