If the U.S.interest rate differential ________,the demand for dollars ________ and the U.S.exchange rate ________.
A) increases; increase; appreciates
B) decreases; increase; appreciates
C) increases; decrease; depreciates
D) decreases; decreases; appreciates

Question

Quizplus · Accepted Answer

When the U.S. interest rate differential increases, it makes U.S. assets more attractive to investors, leading to an increased demand for dollars and causing the U.S. exchange rate to appreciate.

If the USinterest Rate Differential ________,The Demand for Dollars ________ and the and the U.S.exchange

If the USinterest Rate Differential ,The Demand for Dollars and the and the U.S.exchange