If real interest rates in the United States rise relative to real interest rates in other countries, other things being equal,
A) the exchange value of the dollar would decline relative to other currencies.
B) the exchange value of the dollar would increase relative to other currencies.
C) there would likely be no effect on the exchange value of the dollar relative to other currencies.
D) there would be an indeterminate effect on the exchange value of the dollar relative to other currencies.
Correct Answer:
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