Which of the following interactions will likely have the least effect on the dol

Question

Which of the following interactions will likely have the least effect on the dollar's value? Assume everything else is held constant.

A reduction in U.S. inflation accompanied by an increase in real U.S. interest rates

A reduction in U.S. inflation accompanied by an increase in nominal U.S. interest rates

An increase in U.S. inflation accompanied by an increase in nominal, but not real, U.S. interest rates

An increase in Singapore's inflation accompanied by an increase in real U.S. interest rates

Explanation / Answer

An increase in U.S. inflation accompanied by an increase in nominal, but not real, U.S. interest rates

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