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AP® Macroeconomics

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The Supply of Loanable Funds and the International Sector

APMACR-$1R4NE

How would the change in the loanable funds market of the United States shown in the graph above affect international trade and finance?

A

The international value of the dollar would increase.

B

The international value of the dollar would decrease.

C

The United States would have a financial account surplus.

D

The United States would have a current account deficit.

E

Foreign investment in the United States would increase.