In October 2008, Central Banks Around the World Coordinated a Decrease

In October 2008, central banks around the world coordinated a decrease in interest rates. Ben Bernanke, then Chairman of the Federal Reserve, stated that "policy makers will remain in close contact, monitor developments closely and stand ready to take additional steps should conditions warrant." If all the banks enacted the policy simultaneously, the U.S. interest rate differential would ________ and so the U.S. exchange rate would ________.

A) increase; fall
B) decrease; rise
C) not change; not change
D) not change; rise

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