00:01
If there's a decline in u .s.
00:02
Interest rates compared to the rest of the world, in this question we want to know what's going to happen to the demand for dollars, the supply of dollars, and the exchange rate for dollars.
00:09
And to figure that out, i think it's easiest to use a graphical representation of this foreign exchange market.
00:15
But to start, we need to understand what is this decline in u .s.
00:19
Interest rates going to have to do with this foreign exchange market.
00:21
Well, because the interest rates are declining, we're going to see a decrease in the demand for u .s.
00:26
Assets simply because it's less desirable.
00:28
Other people would prefer to, invest their money where they can earn higher interest on it.
00:34
So because we're going to see that decrease in demand for u .s...