If the U.S. interest rates fall relative to foreign interest ratesO capital flows out of the United States into other countries increase.the U.S. imports rise.the U.S. dollar appreciates.capital flows into the United States from other countries increase.

Answered: Othe U.S. imports rise. O the U.S.…

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Othe U.S. imports rise. O the U.S. dollar appreciates. capital flows into the United States from other countries

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter11: Foreign Exchange, Trade, And Bubbles

Section: Chapter Questions

Problem 3MC

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Question

If the U.S. interest rates fall relative to foreign interest rates
O capital flows out of the United States into other countries increase.
the U.S. imports rise.
the U.S. dollar appreciates.
capital flows into the United States from other countries increase.

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