Which of the following events would result in a greater demand for U.S.dollars in the foreign exchange market,ceteris paribus?

Question

Quizplus · Accepted Answer

An increase in interest rates in the United States makes U.S. assets more attractive to foreign investors, leading to an increase in demand for U.S. dollars in the foreign exchange market. Higher tariffs on imports do not directly affect the demand for U.S. dollars in the foreign exchange market. An increase in interest rates in Japan may lead to a decrease in demand for Japanese yen, but it does not necessarily result in an increase in demand for U.S. dollars.

Which of the Following Events Would Result in a Greater