-Which of the following would best explain the decrease in the supply of dollars illustrated in Figure ?

Name: -Which of the following would best explain the decrease in the supply of dollars illustrated in Figure ?
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Question

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An increase in U.S. interest rates, ceteris paribus, would decrease the supply of dollars as investors hold onto dollars to take advantage of higher returns on investments in the U.S., reducing the amount of dollars available in foreign exchange markets.

-Which of the Following Would Best Explain the Decrease in the Supply