Multiple Choice
Which of the following steps does not belong in a sequence reflecting the impact on international markets of increased borrowing to finance a large government budget deficit?
A) The U.S.Treasury sells securities.
B) The sale of securities drives up interest rates.
C) Attracted by the high interest rates,foreigners purchase dollars in order to invest in the U.S.
D) Greater demand for the dollar increases its value in exchange for other currencies.
E) The rising value of the dollar leads to increased U.S.exports and reduced imports.
Correct Answer:
Verified
Correct Answer:
Verified
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