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In the Foreign Exchange Market, How Does Each of the Following

Question 410

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In the foreign exchange market, how does each of the following influences affect the demand for dollars and the demand curve for dollars?
a) an increase in the exchange rate.
b) an increase in the U.S. interest rate.
c) a fall in the expected future exchange rate.

Correct Answer:

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a) The increase in the exchange rate dec...

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