When real interest rates in other countries rise relative to that in the u. s., other things being equal, we would expect the u. s. dollar to:?

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Bailee Krueger

2 January, 13:45

When real interest rates in other countries rise relative to that in the u. s., other things being equal, we would expect the u. s. dollar to:?

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Anahi · Answer 1

All other things being equal, the exchange value of the dollar would increase relative to other currencies. Which means that higher amount of money will be obtained if dollar are converted to other currencies and lower amount if other currencies are converted to dollar.