Everything else remaining unchanged, an increase in interest rates in the United States is most likely to result in
A. capital inflows into the United States.
B. depreciation of the dollar.
C. outflows of capital from the United States.
D. a decrease in the demand for dollar-denominated financial assets.
Answer: A
Economics
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A) a straight line at a 45-degree angle from the origin. B) a straight line at a 30-degree angle from the origin. C) the most bowed curve possible. D) the horizontal axis.
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Interest rate increases lead to currency appreciation and increases in net exports
a. True b. False Indicate whether the statement is true or false
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