If interest rates in Japan rise and those in the United States do not change, there is
A) a downward movement along the supply curve for dollars.
B) a decrease in the supply of dollars.
C) an increase in the supply of dollars.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Higher interest rates in Japan make Japanese investments more attractive, leading to an increase in the supply of dollars as investors exchange dollars for yen to invest in Japan.

If Interest Rates in Japan Rise and Those in the United