MCQOPTIONS
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| 1. |
A country that is a net international debtor initially experiences a (an) ? |
| A. | larger savings pool available to finance domestic spending |
| B. | higher interest rate which leads to lower domestic investment |
| C. | loss of funds to trading partners overseas |
| D. | decrease in its services exports to other countries |
| Answer» B. higher interest rate which leads to lower domestic investment | |