International flows of funds can affect the Fed's monetary policy. For example, if there is downward pressure on U.S. interest rates that can be offset by foreign ____ of funds, the Fed may not feel compelled to use a ____ monetary policy.
A) inflows; loose
B) inflows; tight
C) outflows; loose
D) outflows; tight
E) none of the above
Correct Answer:
Verified
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