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In the Foreign Exchange Market, the Demand for Dollars Increases

Question 143

Multiple Choice

In the foreign exchange market, the demand for dollars increases and the demand curve shifts if the


A) U.S.interest rate differential increases.
B) expected future exchange rate falls.
C) U.S.interest rate differential decreases.
D) U.S.exchange rate rises.
E) U.S.exchange rate falls.

Correct Answer:

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