When the Fed raises the federal funds rate,
A. net exports increase.
B. the value of the dollar falls on the foreign exchange market.
C. the value of the dollar rises on the foreign exchange market.
D. consumption increases.
Answer:C
When the Fed raises the federal funds rate,
A. net exports increase. B. the value of the dollar falls on the foreign exchange market. C. the value of the dollar rises on the foreign exchange market. D. consumption increases.