An increase in the U.S. interest rate relative to other countries ...

[luminitza]

An increase in the U.S. interest rate relative to other countries will lead to ________ in the supply of dollars and a ________ in the exchange rate.
 
  A) an increase; fall
  B) a decrease; fall
  C) an increase; rise
  D) a decrease; rise
  E) no change; rise

Question 2

The costs of inflation ________ when inflation is more rapid and ________ when inflation is more unpredictable.
 
  A) decrease; increase
  B) do not change; increase
  C) increase; increase
  D) increase; do not change
  E) increase; decrease

[fraziera112]

Answer to Question 1

D

Answer to Question 2

C

[luminitza]

Excellent

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