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What will happen to the value of the dollar if U.S. interests rates increase relative to...

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Economics

What will happen to the value of the dollar if U.S. interestsrates increase relative to interst rates in the rest of theworld?

Question 33 options:

the dollar will appreciate and U.S. exports will become moreexpensive

the dollar will appreciate and U.S. exports will become lessexpensive

the dollar will depreciate and U.S. exports will become moreexpensive

the dollar will depreciate and U.S. exports will become lessexpensive

Answer & Explanation Solved by verified expert
4.4 Ratings (710 Votes)
Ans The dollar will depreciate and US exports will become more expensive Interest rates alone do not determine the value of a currencyTwo different elementspolitical and monetary dependability and the interest for a nations merchandise and enterprisesare regularly of more noteworthy significance Factors for example a nations parity of exchange among imports and fares can be a critical factor in deciding cash esteem That is on the grounds that more noteworthy interest for a nations items implies more prominent interest for the nations    See Answer
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