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Chako Chako
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8 years ago
Which one of the following statements is the MOST accurate?
A) A rise in the interest rate offered by dollar deposits causes the dollar to depreciate.
B) A rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
C) A rise in the interest rate offered by the dollar causes the euro to appreciate.
D) For a given euro interest rate and constant expected exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
E) A rise in the interest rate offered by dollar deposits does not affect the U.S. dollar.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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#1
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8 years ago
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Chako Author
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#2
8 years ago
Correct!
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#3
8 years ago
Don't forget to vote my answer as best Nerd Face
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