Interest Rates and Future Strength or Weakness of the US Dollar
Assume that foreign interest rates are expected to rise above US interest rates. What does this suggest about the future strength or weakness of the US dollar?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/interest-rates-and-future-strength-or-weakness-of-the-us-dollar-315
... savings increase and, in turn, less money is left to invest. Moreover, the rise in interest rates also brings up the loan rate. This means a rise in the cost of capital, which is to discourage loans from the banks and investment in the private sector. This will have negative effects on the country's aggregate output. ...