​If a Country Experiences a Reduction in Interest Rates Relative

question 37

Multiple Choice

​If a country experiences a reduction in interest rates relative to U.S. interest rates, and there is no change in inflationary conditions, that country's investors will ____ their investments in U.S. securities, and there is ____ pressure on its currency's equilibrium value.

• A) ​increase; downward
• B) ​decrease; upward
• C) ​increase; upward
• D) ​decrease; downward

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Definitions:

Lineation

The alignment of linear features, such as minerals or textures, within a rock that indicates a directional force or flow.

Deformed

Referring to rocks or earth materials that have been changed in shape or dimension under stress, such as during tectonic activity.

Flattened

Describes objects that have been pressed into a thinner shape or planar surface, often as a result of external pressure.

Low Pressure

A condition in the atmosphere where the air pressure is lower than surrounding areas, often leading to cloudy weather and precipitation.