If the demand for the dollar decreases on the international market, or the supply of the dollar increases, the value of the dollar will decline. O True O False

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter19: International Finance And The Foreign Exchange Market
Section: Chapter Questions
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If the demand for the dollar decreases on the international market, or the supply of the dollar increases, the
value of the dollar will decline.
O True
O False
Question 28
When interest rates increase in the United States
O there is a tendency for the value of the dollar to decrease.
O there is a tendency for the value of the dollar to increase.
O there is a tendency for imports to increase.
O there is a tendency for imports to decrease.
O Both b and c are answers.
Transcribed Image Text:If the demand for the dollar decreases on the international market, or the supply of the dollar increases, the value of the dollar will decline. O True O False Question 28 When interest rates increase in the United States O there is a tendency for the value of the dollar to decrease. O there is a tendency for the value of the dollar to increase. O there is a tendency for imports to increase. O there is a tendency for imports to decrease. O Both b and c are answers.
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