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What is a significant expected outcome of the US Federal Reserve's decision to cut interest rates?
  • a)
    Decreased foreign investments in India
  • b)
    Strengthening of the US dollar against other currencies
  • c)
    Increased foreign investments in India
  • d)
    Higher unemployment rates in the US
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is a significant expected outcome of the US Federal Reserve's dec...
The significant expected outcome of the US Federal Reserve's decision to cut interest rates is an increase in foreign investments in India. Lower interest rates often encourage investors to borrow more and invest in emerging markets like India, as the potential for higher returns can be attractive. This influx of capital can bolster economic growth in India. An additional fact is that interest rate cuts in the US can lead to fluctuations in currency values, impacting trade balances globally.
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What is a significant expected outcome of the US Federal Reserve's decision to cut interest rates?a) Decreased foreign investments in Indiab) Strengthening of the US dollar against other currenciesc) Increased foreign investments in Indiad) Higher unemployment rates in the USCorrect answer is option 'C'. Can you explain this answer?
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