Other things remaining the same, the U.S. interest rate differential increases if the U.S. interest rate

Name: Other things remaining the same, the U.S. interest rate differential increases if the U.S. interest rate
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

If the U.S. interest rate rises and foreign interest rates remain constant, the interest rate differential between the U.S. and other countries will increase. This is because the U.S. interest rate will become relatively higher compared to the foreign interest rate.

Other Things Remaining the Same, the U