For a major country with extensive capital flows, what is the effect of an increase in interest rates?

a. There will be an inflow of capital, a currency depreciation, and increased net exports.
b. There will be an inflow of capital, a currency depreciation, and reduced net exports.
c. There will be an outflow of capital, a currency depreciation, and increased net exports.
d. There will be an inflow of capital, a currency appreciation, and reduced net exports.


D

Economics

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Economics