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