Other Things Being Constant, If the U

question 199

Multiple Choice

Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect

• A) political instability in the United States.
• B) a worsening of the U.S. balance of payments.
• C) an appreciation of U.S. currency.
• D) that a "dirty float" will emerge.

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