If the Risk of Buying U

question 43

Multiple Choice

If the risk of buying U.S.assets rises because it is discovered that lending institutions had not carefully evaluated borrowers prior to lending them funds,then

• A)the real exchange rate and the interest rate will rise.
• B)the real exchange rate will rise and the interest rate will fall.
• C)the real exchange rate will fall and the interest rate will rise.
• D)the real exchange rate and the interest rate will fall.

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Definitions:

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ArrayList

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