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If US Interest Rates Fall Relative to British Interest Rates

Question 18

Multiple Choice

If U.S. interest rates fall relative to British interest rates:


A) the demand for the pound decreases and the dollar depreciates.
B) the demand for the pound increases and the dollar appreciates.
C) the demand for the pound decreases and the dollar appreciates.
D) the demand for the pound increases and the dollar depreciates.

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