Assume the only factor influencing U.S. Dollar/Euroexchange rate is a change in the difference in interest ratesbetween the United States and the EuropeanUnion.Based onthe information in the exchange rate tables, what can you say abouthow interest rates must have changed between the United States andtheEuropean Union from October 21, 2008 to October 21, 2009? Support your answer.
AND ALSO SUPPORT THIS
An increase in real GDP growth in the United States is likely todecrease the value of the U.S. Dollar against the currencies of itstrading partners (assume theincrease in the U.S. real GDP growthrate is the only factor influencing exchange rates). TRUE or FALSE?Support your answer.