The inflow of foreign capital has helped keep U.S. interest rates low because it finances high levels of consumption, including imported products, by U.S. households.

Name: The inflow of foreign capital has helped keep U.S. interest rates low because it finances high levels of consumption, including imported products, by U.S. households.
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Question

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Foreign capital inflow increases the supply of available funds, which can lead to lower interest rates, supporting higher consumption levels, including imports.

The Inflow of Foreign Capital Has Helped Keep U