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how do you think weaker u.s. economic conditions could affect capital flows? if capital flows are affected, how would this influence the value of the dollar (holding other factors constant)?

Sagot :

Weaker U.S. economic conditions commonly result in lower interest rates and this would affect capital flows.

The amount of interest that is charged on a loan, deposit, or borrowing each period expressed as a percentage is known as the interest rate. The total amount of interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time during which it is lent, deposited, or borrowed. A rate over a year is called an annual interest rate. However, they are typically annualised. Other interest rates apply over shorter time frames, such a day or a month. A dollar of present is preferred over a dollar of future according to one definition of the interest rate, which is described as "an index of the preference."

learn more about interest rate here

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