In the foreign exchange market,an increase in the rate of return available in the eurozone,all other things equal,will shift the _____ curve for the _____ to the _____,and the euro will _____.

Question

Quizplus · Accepted Answer

An increase in the rate of return available in the eurozone will increase the demand for euros, leading to a rightward shift in the demand curve for the euro. As a result, the euro will appreciate in value.

In the Foreign Exchange Market,an Increase in the Rate of Return