Other things constant, which of the following will most likely cause the dollar to appreciate on the exchange rate market?

Question

Quizplus · Accepted Answer

Higher interest rates in the U.S. attract foreign capital, increasing demand for the dollar. A low inflation rate in the U.S. makes U.S. goods more competitive, increasing demand for the dollar. High income growth in Europe can increase demand for U.S. exports, also increasing demand for the dollar.

Other Things Constant, Which of the Following Will Most Likely