A reduction in the U.S. interest rate relative to the British interest rate will cause a(an):

Name: A reduction in the U.S. interest rate relative to the British interest rate will cause a(an):
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Question

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A reduction in the U.S. interest rate relative to the British interest rate makes U.S. assets less attractive, leading to a capital outflow from the U.S. and a depreciation of the dollar. Conversely, the British pound appreciates as capital flows into the UK seeking higher returns.

A Reduction in the U