Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 38 - The Balance of Payments, Exchange Rates, and Trade Deficits - Quick Quiz for Figure 38.1 - Page 786: 4

Answer

C.) appreciate the dollar and might be caused by a significant rise of real interest rates in the United States.

Work Step by Step

If there is a rightward shift the supply will increase and this causes a rise in the real interest rate levels. An increase in the supply of one currency causes the other currency to appreciate against it.
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