If corporate tax rates rise in Brazil, the demand for the real will _____, and the real will _____.

Name: If corporate tax rates rise in Brazil, the demand for the real will _____, and the real will _____.
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Question

Quizplus · Accepted Answer

When corporate tax rates rise in Brazil, it makes the country less attractive to foreign investors, which leads to a decrease in demand for the real. As a result, the currency will depreciate in value. Therefore, the correct answer is D - fall; depreciate.

If Corporate Tax Rates Rise in Brazil, the Demand for the Real