
A U.S. federal budget deficit that raises real interest rates would most likely
A) lead to a depreciation of the U.S. dollar on the foreign exchange market.
B) encourage foreign investment in U.S. securities.
C) lead to an increase in exports.
D) lead to an appreciation of other currencies relative to the U.S. dollar.
E) discourage imports of foreign goods.
Correct Answer:
Verified
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