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How similiar are these students work? Student 1: Global Economic Impact: Higher U.S. interest rates can attract foreign investors looking for better returns on their
How similiar are these students work? Student 1: "Global Economic Impact: Higher U.S. interest rates can attract foreign investors looking for better returns on their investments, leading to an inflow of capital into the U.S. This can strengthen the U.S. dollar, making U.S. exports more expensive and imports cheaper, which could potentially lead to a trade deficit. On the other hand, emerging economies may suffer from capital outflows, destabilizing their financial markets." Student 2: "mpact on Exchange Rates: Higher interest rates in the U.S. can attract foreign capital seeking higher returns on investment, leading to an appreciation of the U.S. dollar. While this can make imports cheaper for U.S. consumers, it can also make U.S. exports more expensive for foreign buyers, potentially harming exporters and widening the trade deficit
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