In the foreign exchange market, an increase in the U.S.interest rate leads to ________ in the exchange rate because the supply of dollars ________.

Name: In the foreign exchange market, an increase in the U.S.interest rate leads to ________ in the exchange rate because the supply of dollars ________.
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An increase in the U.S. interest rate makes holding dollars more attractive, leading to an increase in demand for dollars. As a result, the supply of dollars decreases, and the exchange rate appreciates.

In the Foreign Exchange Market, an Increase in the U