Which of the Following Steps Does Not Belong in a Sequence

question 123

Multiple Choice

Which of the following steps does not belong in a sequence reflecting the impact on international markets of increased borrowing to finance a large government budget deficit?

• A)The U.S.Treasury sells securities.
• B)The sale of securities drives up interest rates.
• C)Attracted by the high interest rates,foreigners purchase dollars in order to invest in the U.S.
• D)Greater demand for the dollar increases its value in exchange for other currencies.
• E)The rising value of the dollar leads to increased U.S.exports and reduced imports.

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