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​If a Country Experiences a Reduction in Interest Rates Relative

Question 37

Multiple Choice

​If a country experiences a reduction in interest rates relative to U.S. interest rates, and there is no change in inflationary conditions, that country's investors will ____ their investments in U.S. securities, and there is ____ pressure on its currency's equilibrium value.


A) ​increase; downward
B) ​decrease; upward
C) ​increase; upward
D) ​decrease; downward

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