When the U.S.interest rate differential ________, the demand for dollars ________ and the demand curve for dollars shifts rightward.

Question

Quizplus · Accepted Answer

When the U.S. interest rate differential rises, it means that the interest rates in the U.S. increase relative to other countries. This makes investments in the U.S. more attractive and leads to an increase in demand for dollars, resulting in a rightward shift of the demand curve for dollars.