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Numbers 1-5 refer to the graph below. Explain the effect of an increase in interest rates in the US on the U.S. dollar when there

image text in transcribed

Numbers 1-5 refer to the graph below.

Explain the effect of an increase in interest rates in the US on the U.S. dollar when there is no change in the interest rate in Japan's currency. The Dollar will either appreciate or depreciate (1) , and exports, imports, the Aggregate Demand and the GDP will either increase or decrease (2-5).

The dollar will

Group of answer choices

A depreciate

B appreciate

Exports from the US will

Group of answer choices

A increase

B decrease

Imports to the US will

Group of answer choices

A decrease

B increase

Aggregate Demand will

Group of answer choices

A decrease

B increase

The GDP will

Group of answer choices

A Decrease

B increase

image text in transcribed Market for Dollars Exchange Rate Supply of Dollars Euro Price Per Dollar * Demand for Dollars $1- Quantity of Dollars

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