Multiple Choice
If heavy federal borrowing pushes up real interest rates in the United States, which of the following will most likely result?
A) an inflow of capital and an appreciation in the foreign exchange value of the dollar
B) an outflow of capital and a depreciation in the foreign exchange value of the dollar
C) an inflow of capital and a depreciation in the foreign exchange value of the dollar
D) an outflow of capital and an appreciation in the foreign exchange value of the dollar
Correct Answer:
Verified
Correct Answer:
Verified
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