Which of the following events would result in a greater demand for U.S.dollars in the foreign exchange market,ceteris paribus?

Question

Quizplus · Accepted Answer

An increase in interest rates in the United States would make the U.S. dollar more attractive to foreign investors seeking higher returns on their investments, therefore increasing demand for the U.S. dollar in the foreign exchange market. Higher tariffs or quotas imposed by the United States on imports would not necessarily impact demand for the U.S. dollar in the foreign exchange market. An increase in interest rates in Japan may lead to a decrease in demand for the U.S. dollar as investors may seek higher returns in Japan.

Which of the Following Events Would Result in a Greater