If a central bank decreases interest rates, then gradually: a. the country's gross domestic product is likely to decrease. b. foreign exchange rate is likely to appreciate. c. demand for exported goods and services is likely to increase. d. flows of investment funds into the country are likely to decrease.
If a central bank decreases interest rates, then gradually: a. the country's gross domestic product is likely to decrease. b. foreign exchange rate is likely to appreciate. c. demand for exported goods and services is likely to increase. d. flows of investment funds into the country are likely to decrease.
Chapter20: Short-term Financing
Section: Chapter Questions
Problem 5ST
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Question
If a central bank decreases interest rates, then gradually:
a.
the country's gross domestic product is likely to decrease.
b.
foreign exchange rate is likely to appreciate.
c.
demand for exported goods and services is likely to increase.
d.
flows of investment funds into the country are likely to decrease.
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