If the Fed Increases Interest Rates in the U

question 238

Multiple Choice

If the Fed increases interest rates in the U.S.relative to other nations,

• A)foreign investors are likely to transfer funds to U.S.investments.
• B)foreign investors are likely to reduce their investment in U.S.securities.
• C)foreign governments will likely reduce their interest rates further,to remain complimentary to what the U.S.is doing.
• D)foreign investors will see this as a sign of a looming recession and redirect their funds to time deposits.

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