If the Fed increases interest rates,other things remaining the same,foreigners demand ________ dollars thereby ________ the exchange rate.
A)more;increasing
B)more;decreasing
C)fewer;increasing
D)fewer;decreasing
E)the same number of;not affecting

Question

Quizplus · Accepted Answer

When the Fed increases interest rates, it makes U.S. assets more attractive to foreign investors, leading to an increased demand for dollars to purchase these assets, thereby increasing the exchange rate.

If the Fed Increases Interest Rates,other Things Remaining the Same,foreigners