In 2012 and Again in 2015, Citizens of Greece Were

Multiple Choice

In 2012 and again in 2015, citizens of Greece were reported to be withdrawing their savings from Greek banks because they feared that Greece would leave the European Union. What is consistent with what the open-economy macroeconomic model predicts?

A) This event should have raised Grecian interest rates and caused the Grecian currency to appreciate.
B) This event should have raised Grecian interest rates and caused the Grecian currency to depreciate.
C) This event should have lowered Grecian interest rates and caused the Grecian currency to appreciate.
D) This event should have lowered Grecian interest rates and caused the Grecian currency to depreciate.