Multiple Choice
If foreign investors believe that the Lebanese government will default on their debt, what might happen?
A) a decrease in Lebanese interest rates and an increase in Lebanese net capital outflow
B) an increase in both Lebanese interest rates and net capital outflow
C) a decrease in both Lebanese interest rates and net capital outflow
D) an increase in Lebanese interest rates and a decrease in Lebanese net capital outflow
Correct Answer:
Verified
Correct Answer:
Verified
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