When the U.S. interest rate rises, the demand for U.S. dollars ...

[WhattoUnderstand]

When the U.S. interest rate rises, the demand for U.S. dollars ________ and the exchange rate ________.
 
  A) increases; falls
  B) does not change; rises
  C) increases; rises
  D) decreases; falls
  E) decreases; rises

Question 2

The total amount spent on new capital goods is called
 
  A) financial capital.
  B) depreciation.
  C) net investment.
  D) wealth.
  E) gross investment.

[meryzewe]

Answer to Question 1

C

Answer to Question 2

E