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Sagot :
An increase in US. Interest rates relative to German interest rates would likely reduce the u. S. Demand for euros and increase the supply of euros for sale.
What is the impact of an increase in interest rate on a country's currency?
When the interest rate of a country's currency increases, the value of that currency increases. As a result, there would be an increase in the demand for that currency relative to other currencies.
When the US interest rates increase relative to that of Germany, the value of the dollar would increase. This would lead to an increase in the demand for the dollar and a decrease in demand for the euros.
To learn more about currencies, please check: https://brainly.com/question/17180334
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