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If the Australian Interest Rate Differential Rises,then the Effect in the Foreign

Question 89

Multiple Choice

If the Australian interest rate differential rises,then the effect in the foreign exchange market on the demand for dollars is that the


A) demand for dollars decreases.
B) quantity of dollars demanded increases.
C) demand for dollars increases.
D) quantity of dollars demanded decreases.
E) demand for dollars does not change and the quantity of dollars demanded also does not change.

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