An increase in domestic interest rates can be expected to: improve both the financial capital account and the current ac
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An increase in domestic interest rates can be expected to: improve both the financial capital account and the current ac
QUESTION 4 An increase in the rate of inflation outside of the UK could be expected to: O Increase in UK inflation and reduction in interest rates Decrease in UK inflation and rise in sterling exchange rate Decrease in UK inflation rate and reduction in interest rates Increase in UK inflation and increase in interest rates Deceases in the sterling exchange rate and in interest rates
An increase in domestic interest rates can be expected to: improve both the financial capital account and the current account of the balance of payments; worsen both the financial capital account and the current account; improve the financial capital account but worsen the current account ; worsen the financial capital account but improve the current account.