An increase in the U.S.interest rate relative to other countries will lead to ________ in the supply of dollars and a ________ in the exchange rate.

Name: An increase in the U.S.interest rate relative to other countries will lead to ________ in the supply of dollars and a ________ in the exchange rate.
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Question

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An increase in U.S. interest rates makes U.S. assets more attractive, decreasing the supply of dollars as investors hold onto them, leading to a rise in the exchange rate.

An Increase in the U