Which of the following would cause the US dollar to increase in value compared to the Japanese yen?

(a) An increase in the money supply in the US
(b) An increase in interest rates in the US
(c) An increase in the US trade deficit with Japan
(d) The US purchase of gold on the open market
(e) The sale of $2 billion dollars worth of Japanese television sets to the US


Ans: (b) An increase in interest rates in the US

Economics

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