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Other Things Being Equal, Foreign Governments and Corporations Would Demand

Question 3

Multiple Choice

Other things being equal, foreign governments and corporations would demand ____ U.S. funds if their local interest rates were lower than U.S. rates. Therefore, for a given set of foreign interest rates, foreign demand for U.S. funds is ____ related to U.S. interest rates. ​


A) less; inversely
B) more; positively
C) less; positively
D) more; inversely

Correct Answer:

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