Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect a. political instability in the United States. b. a worsening of the U.S. balance of payments. c. an appreciation of U.S. currency. d. that a "dirty float" will emerge.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter4: Exchange Rate Determination
Section: Chapter Questions
Problem 22QA
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Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect

a. political instability in the United States.

b. a worsening of the U.S. balance of payments.

c. an appreciation of U.S. currency.

d. that a "dirty float" will emerge.

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