The Fed Announces That It Intends to Implement Policies to Increase

question 8

Multiple Choice

The Fed announces that it intends to implement policies to increase interest rates. Which of the following correctly identifies the most likely result of higher U.S. interest rates?

• A) More money will flow into the United States from foreign investors.
• B) The economy will experience an increase in business investment spending.
• C) The value of the dollar will fall relative to other currencies.
• D) The rate of inflation will increase.

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