Borrowing in Foreign Currency to Buy Imports or Invest in Foreign

question 2

Multiple Choice

Borrowing in foreign currency to buy imports or invest in foreign currency,

• A)decreases demand for the domestic currency,appreciating the domestic currency
• B)increases demand for the domestic currency,depreciating the domestic currency
• C)increases demand for the domestic currency,appreciating the domestic currency
• D)does not affect the exchange rates

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