An increase in U.S. interest rates relative to German interest rates would likely ____ the U.S. demand for euros and ____ the supply of euros for sale.
A) reduce; increase
B) increase; reduce
C) reduce; reduce
D) increase; increase

Question

Quizplus · Accepted Answer

An increase in U.S. interest rates would make U.S. assets relatively more attractive, which would reduce demand for euros and increase supply of euros for sale.

An Increase in U