If interest rates in the United States rise,
A) the value of the dollar will rise as the foreign investors increase their holdings of U.S. investments.
B) the value of the dollar will fall as foreign investors increase their holdings of U.S. investments.
C) the value of the dollar will rise as foreign investors sell their U.S. investments.
D) the value of the dollar will fall as foreign investors sell their U.S. investments.
Question 2
Which of the following does not describe governmental policy actions that are helpful in supporting growth in an economy? Governmental policies that
A) avoid playing any role in developing communication systems.
B) facilitate the development of an efficient financial system.
C) provide secure rights to private property.
D) establish an independent court system that enforces contracts.
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