If the U.S. interest rate rises while interest rates in the rest of the world do not change, the higher
u.S. interest rate
A) has no effect on the demand for dollars.
B) decreases the demand for dollars.
C) will stop all trading between the currencies of the U.S. and other countries.
D) increases the demand for dollars.
Correct Answer:
Verified
Q112: Suppose the current exchange rate between the
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A) demand
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