Higher interest rates in a foreign country tend to ____ the growth of an economy and ____ demand for the MNC's product.
A) increase; increase
B) reduce; reduce
C) increase; reduce
D) reduce; increase

Question

Quizplus · Accepted Answer

Higher interest rates in a foreign country tend to reduce economic growth as borrowing costs increase, which can lead to reduced consumer spending and investment. This, in turn, can reduce demand for a multinational corporation's (MNC's) products in that country.

Higher Interest Rates in a Foreign Country Tend to ____