Would this event cause the demand for the dollar to increase

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Reference no: EM1395529

Q. Let the exchange rate be defined as the number of dollars per British pound. Suppose there is an increase in U.S. interest rates relative to which of Britain.??
(a.) Would this event cause the demand for the dollar to increase or decrease relative to the demand for the pound? Explain why?

Reference no: EM1395529

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