If the U.S. Federal Reserve increases interest rates,
A) the demand curve for U.S. dollars and the demand curve for European euros both shift rightward.
B) the demand curve for U.S. dollars shifts leftward and the supply curve of U.S. dollars shifts rightward.
C) only the demand curve for U.S. dollars shifts rightward.
D) the demand curve for U.S. dollars shifts rightward and the supply curve of U.S. dollars shifts leftward.
Correct Answer:
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