Multiple Choice
An increase in a country's budget deficit
A) increases net capital outflow,so the demand for its currency in the market for foreign-currency exchange shifts right.
B) increases net capital outflow,so the supply of its currency in the market for foreign-currency exchange shifts right.
C) decreases net capital outflow,so the demand for its currency in the market for foreign-currency exchange shifts left.
D) decreases net capital outflow,so the supply of its currency in the market for foreign-currency exchange shifts left.
Correct Answer:
Verified
Correct Answer:
Verified
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