Assume that the interest rate in England is 2% and in the United States 3%. Next, suppose that for some reason the rate of interest in the United States increases to 4%. The value of the dollar will tend to:

 

A. lower.

 

b. increase.

 

c. stay stable.

 

d. go up and then go down.

Answer rating: 100% (QA)

When the interest rate in one country is higher than in another it tends to attrac... View the full answer