If the U.S. interest rates fall relative to foreign interest ratesO capital flows out of the United States into other countries increase.the U.S. imports rise.the U.S. dollar appreciates.capital flows into the United States from other countries increase.

Answered: Othe U.S. imports rise. O the U.S.…

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Othe U.S. imports rise. O the U.S. dollar appreciates. capital flows into the United States from other countries

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter36: Exchange Rates And Financial Links Between Countries

Section: Chapter Questions

Problem 18E

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Question

If the U.S. interest rates fall relative to foreign interest rates
O capital flows out of the United States into other countries increase.
the U.S. imports rise.
the U.S. dollar appreciates.
capital flows into the United States from other countries increase.

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