An increase in the U.S. interest rate will most likely

A) reduce the attractiveness of investment in the United States.
B) lead to a decrease in the value of the U.S. dollar.
C) lead to an inflow of funds to the United States and an appreciation of the dollar.
D) provide a stimulus to U.S. export industries.

Answer: C

Economics

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The large budget deficits of 2003 and 2006 meant that the federal government was borrowing upwards of $1.7 trillion over the four-year period. If that borrowing limits the ability of the private sector to get financial capital for its purposes, economists would call this

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