The current exchange rate is $1 = euro€1. suppose that u. s. real interest rates increaseu. s. real interest rates increase. what would be expected to happen to the value of the dollar and the value of the euro?
a. the dollar will depreciate, and the euro will depreciate.
b. the dollar will depreciate comma and the euro will appreciate. the dollar will depreciate, and the euro will appreciate.
c. the dollar will appreciate, and the euro will appreciate.
d. the dollar will appreciate comma and the euro will depreciate. the dollar will appreciate, and the euro will depreciate.
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