For a major country with extensive cash-flows, what is the effect of an increase in interest rates? A. There will be an inflow of capital, a currency depreciation, and increase net exports. B. There will be an inflow of capital, a currency depreciation, and reduced net exports. C. There will be an outflow of capital, a currency depreciation, and increased net exports. D. There will be an inflow of capital, a currency appreciation, and reduced net exports.
