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Figure: Rupee Foreign Exchange Market for U.S.Dollars
-(Figure: Rupee Foreign Exchange Market for U.S.Dollars)Based on the figure,what will a rise in real interest rates in the United States cause?

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Figure: Rupee Foreign Exchange Market for U.S.Dollars 
-(Figure: Rupee Foreign Exchange Market for U.S.Dollars)Based on the figure,what will a rise in real interest rates in the United States cause?

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A rise in real interest rates in the United States will increase the return on U.S. dollar-denominated assets, therefore attracting more foreign investors to invest in U.S. assets, and increasing the demand for dollars. This will cause the demand curve for dollars to shift to the right.

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