In the 2008 Global Financial Crisis, Many Investors Considered the U.S

Essay

In the 2008 global financial crisis, many investors considered the U.S. economy a safe place to move their assets. What is the predicted impact of this inflow of financial capital to the U.S., which is a large, open economy, on the U.S. interest rate and the U.S. exchange rate, holding other factors constant. Illustrate your Answer graphically and explain in words.