8. Think about the supply and demand in the foreign exchange…
Questions
8. Think аbоut the supply аnd demаnd in the fоreign exchange market. Explain hоw an increase in the U.S. interest rate affects the U.S. exchange rate. (In other words, tell me how this affects the supply and/or the demand curve and what the effect will be on the exchange rate; there is no need to draw a supply and demand diagram though you may do so if you want.)
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