Question: (06.06 HC) Use the graph to answer the question that follows. Real Interest Rate Demand for Funds Q F2 OF1 Quantity of Funds If the

(06.06 HC) Use the graph to answer the question that follows.

(06.06 HC) Use the graph to answer the question that follows. Real Interest Rate Demand for Funds Q F2 OF1 Quantity of Funds If the graph above represents the loanable funds market (of dollars) in the United States, what will be the impact in the foreign exchange market from the shift in the supply of loanable funds? The dollar will appreciate as financial capital flows from the United States increase. The dollar will appreciate as financial capital flows to the United States increase. The dollar will depreciate as financial capital flows from the United States increase. O The dollar will depreciate as financial capital flows to the United States increase. O The dollar will depreciate as exports decrease

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