If a Country Raises Its Budget Deficit,then Net Capital Outflow

question 11

Multiple Choice

If a country raises its budget deficit,then net capital outflow

• A)rises,so the supply of its currency shifts right in the market for foreign-currency exchange.
• B)rises,so the demand for its currency shifts right in the market for foreign-currency exchange.
• C)falls,so the supply of its currency shifts left in the market for foreign-currency exchange.
• D)falls,so the demand for its currency shifts right in the market for foreign-currency exchange.

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