If the interest rate in the U.S.falls, U.S.financial assets become ______ attractive to buyers and the ______ U.S.dollars will fall.
A)more; demand for
B)more; supply of
C)less; demand for
D)less; supply of

Question

Quizplus · Accepted Answer

When U.S. interest rates fall, U.S. financial assets become less attractive to buyers because they offer lower returns. Consequently, the demand for U.S. dollars decreases as investors seek higher returns elsewhere.

If the Interest Rate in the U