Asked by TM
If the demand for loanable funds increases, what will happen to real interest rates and the international value of the U.S. dollar (USD)?
Real Interest Rates / International Value of USD
Increase / Increase***
Increase / Decrease
Decrease / No Change
Decrease / Decrease
Decrease / Increase
I've done some research and it's actually not decrease/decrease like I thought it would be... but I saw one that said it was the first option because "When Demand increases, R also increases. When the real interest rate increases, the international value of the dollar also increases." Would this be correct?
Real Interest Rates / International Value of USD
Increase / Increase***
Increase / Decrease
Decrease / No Change
Decrease / Decrease
Decrease / Increase
I've done some research and it's actually not decrease/decrease like I thought it would be... but I saw one that said it was the first option because "When Demand increases, R also increases. When the real interest rate increases, the international value of the dollar also increases." Would this be correct?
Answers
Answered by
bobpursley
correct.
Answered by
TM
ok thank you
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