If for a Particular County an Increase in the Interest

question 44

Multiple Choice

If for a particular county an increase in the interest rate is more or less matched by an expected depreciation in the local currency,

• A)traders will probably be tempted to find another country to invest in.
• B)the interest rate increase per se will not be enough to spark capital flow into the country.
• C)traders will probably be tempted to find another country to invest in and the interest rate increase per se will not be enough to spark capital flow into the country.
• D)capital will glow out of the country as the disgruntled citizens riot and go to war with the neighbors.

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Definitions:

Consensus

A general agreement or the attainment of a common understanding by all parties involved.

Win-Lose Strategy

A competitive strategy where one party's gain is perceived to be at the other’s expense, common in zero-sum situations.

Time

A measurable period during which actions, processes, or conditions exist or take place.

Limited Period

A specific timeframe with defined beginning and end points.