In the foreign exchange market, an increase in the rate of return available in the eurozone, all other things equal, will shift the _____ curve for the _____ to the _____, and the euro will _____.

Question

Quizplus · Accepted Answer

An increase in the rate of return available in the eurozone will attract more investment into the eurozone, thus increasing demand for euros. This will shift the demand curve for euros to the right, leading to an appreciation of the euro.

In the Foreign Exchange Market, an Increase in the Rate