1104EconomicsMedium
In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to ________ against European currencies?
Adecrease; depreciate
Bincrease; depreciate
Cincrease; appreciate
Ddecrease; appreciate
Correct answer
C. increase; appreciate
Explanation
The correct answer is increase; appreciate.