If the Fed raises the U.S. interest rate, the demand for dollars__________ and the exchange rate__________

Name: If the Fed raises the U.S. interest rate, the demand for dollars__________ and the exchange rate__________
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When the Fed raises the U.S. interest rate, it makes U.S. assets more attractive to foreign investors, increasing the demand for dollars. This increased demand for dollars leads to a rise in the exchange rate, making the dollar more expensive relative to other currencies.

If the Fed Raises the U