Multiple Choice
Which of the following is most likely to happen as the result of lower real interest rates in the United States?
A) the dollar will depreciate on the foreign exchange market and imports will grow relative to exports.
B) the dollar will appreciate on the foreign exchange market, and exports will grow relative to imports.
C) the dollar will depreciate on the foreign exchange market, and exports will grow relative to imports.
D) the dollar will appreciate on the foreign exchange market, and imports will grow relative to exports.
Correct Answer:
Verified
Correct Answer:
Verified
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