Ceteris paribus,a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________.I.e. ,the dollar ________ in value against the yen.
A)increase;appreciates
B)increase;depreciates
C)decrease;depreciates
D)decrease;appreciates

Question

Quizplus · Accepted Answer

A rise in U.S. interest rates makes U.S. assets more attractive to investors, increasing demand for the dollar, leading to an appreciation of the dollar against the yen.

Ceteris Paribus,a Rise in Interest Rates in the United States