You open up The Wall Street Journal and notice the federal funds rate in the United States is 0 percent, while in the United Kingdom, the current bank rate, the U.K.'s version of the federal funds rate, is 0.5 percent. From this, you conclude:

Question

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When the federal funds rate is lower in the U.S. compared to the U.K., it typically leads to capital outflows from the U.S. to the U.K. in search of higher returns, causing the dollar to depreciate against the pound.

You Open Up the Wall Street Journal and Notice the Federal