If a Country Raises Its Budget Deficit, the Net Capital

Multiple Choice

If a country raises its budget deficit, the 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.