If the U.S.interest rate differential falls, then the exchange rate ________.
A) definitely rises
B) definitely falls
C) does not change
D) falls only if it was the U.S.interest rate that changed
E) rises only if it was the foreign interest rate that changed
Correct Answer:
Verified
Q158: In the foreign exchange market, an increase
Q159: If the U.S.interest rate rises relative to
Q160: In the foreign exchange market, the demand
Q161: Exchange rate changes are
A) not very volatile
Q162: In the foreign exchange market, an increase
Q164: The exchange rate is volatile because
A) when
Q165: Suppose that a currency's value is found
Q166: When the U.S.interest rate rises, the demand
Q167: The exchange rate can be very volatile,
Q168: In the long run, the exchange rate
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