Multiple Choice
If a country raises its budget deficit,then net capital outflow
A) rises,so the supply of its currency shifts right in the market for foreign-currency exchange.
B) rises,so the demand for its currency shifts right in the market for foreign-currency exchange.
C) falls,so the supply of its currency shifts left in the market for foreign-currency exchange.
D) falls,so the demand for its currency shifts right in the market for foreign-currency exchange.
Correct Answer:

Verified
Correct Answer:
Verified
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