Author Question: An increase in the U.S. interest rate relative to other countries will lead to ________ in the ... (Read 21 times)

luminitza · **on:** Jun 29, 2018

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