Starting from exchange rate End in the figure the right, an decrease in the foreign interest rate, holding everything else constant, will Exchange rate A shift the demand for domestic assets right causing the exchange rate to become overvalued O B. shift the demand for domestic assets left causing the exchange rate to become overvalued E2 OC shift the demand curve for domestic assets loft causing the exchange rate to become undervalued O De shift the demand curve for domestic assets right causing the exchange rate to become undervalued Epp "In the figure the right, which of the following will most likely lead to an increase in the exchange rate from E. to E-? O A. The U.S. Federal Reserve sells dollars. DI DF Q B. The European central bank sells European government bonds. O C. The European central bank buys international roserves Quantity of Dollar Assets @.D. The U.S. Federal Reserve buys U.S. Treasury bonds