If interest rates rise in the United States relative to the rest of the world,the demand for U.S.dollars will ________ because there is greater demand for assets with ________ returns.

Question

Quizplus · Accepted Answer

When interest rates rise in the U.S. relative to other countries, foreign investors seek to invest in U.S. assets to gain higher returns, increasing the demand for U.S. dollars.

If Interest Rates Rise in the United States Relative to the Rest