A country's net outflow of funds ____ its interest rates, and ____ its economic conditions.

Question

​A country's net outflow of funds ____ its interest rates, and ____ its economic conditions.

Quizplus · Accepted Answer

A country's net outflow of funds, which refers to the amount of capital leaving the country compared to the amount coming in, affects its interest rates and economic conditions. When there is a net outflow of funds, it can put downward pressure on a country's currency, which can lead to higher interest rates to attract investment. In addition, a net outflow of funds can indicate a lack of confidence in a country's economic conditions, which can lead to further economic challenges. Therefore, both interest rates and economic conditions are affected by a country's net outflows of funds.

​A Country's Net Outflow of Funds ____ Its Interest Rates

A Country's Net Outflow of Funds ____ Its Interest Rates