If a Country Experiences an Increase in Interest Rates Relative

question 25

Multiple Choice

If a country experiences an increase in interest rates relative to U.S. interest rates, the inflow of U.S. funds to purchase its securities should ____, the outflow of its funds to purchase U.S. securities should ____, and there is ____ pressure on its currency's equilibrium value.​

• A) ​increase; decrease; downward
• B) ​decrease; increase; upward
• C) ​increase; decrease; upward
• D) ​decrease; increase; downward
• E) ​increase; increase; upward

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Definitions:

Tables

A systematic arrangement of data in rows and columns for easy reference and analysis.

Pie Graph

A circular chart divided into sectors, each representing a proportion of the whole.

Vertical Axis

In various contexts, this term can refer to the up-and-down direction in a coordinate system, or metaphorically, to hierarchical levels within organizations.

Line Graph

A type of chart used to display information as a series of data points connected by straight line segments.