• 2022-05-31
    Which one of the following statements is the MOST accurate?
    A: A rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
    B: A rise in the interest rate offered by dollar deposits causes the dollar to depreciate.
    C: A rise in the interest rate offered by dollar deposits does not affect the U.S. dollar.
    D: For a given euro interest rate and constant forward exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate.