When the U.S.interest rate rises, the demand for U.S.dollars ________ and the exchange rate ________.
A) increases; rises
B) increases; falls
C) decreases; rises
D) decreases; falls
E) does not change; rises
Correct Answer:
Verified
Q161: Exchange rate changes are
A) not very volatile
Q162: In the foreign exchange market, an increase
Q163: If the U.S.interest rate differential falls, then
Q164: The exchange rate is volatile because
A) when
Q165: Suppose that a currency's value is found
Q167: The exchange rate can be very volatile,
Q168: In the long run, the exchange rate
Q169: When people expect that the future exchange
Q170: In the foreign exchange market, the exchange
Q171: Yesterday, the dollar was trading in the
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