According to the textbook, interest rates in one country can no longer be viewed as separate and independent from interest rates in other countries.

Question

Quizplus · Accepted Answer

Due to globalization and the interconnectedness of financial markets, interest rates in one country are influenced by and can influence interest rates in other countries. This is because investors seek the best returns on their investments globally, causing capital to flow in ways that link interest rates across different nations.

According to the Textbook, Interest Rates in One Country Can