The Fed announces that it intends to implement policies to increase interest rates. Which of the following correctly identifies the most likely result of higher U.S. interest rates?

Question

Quizplus · Accepted Answer

Today's money markets form a global system. Investors throughout the world can move their money quickly into countries where the return is most attractive relative to risk. If the Fed increases interest rates, the higher return will attract more money from foreign investors into the United States.

The Fed Announces That It Intends to Implement Policies to Increase