Quote:
Originally Posted by jharp
And this is prevelant enough to raise our dollar that substantially? With the rate still lower in Canada, why would people not take out money here to lend here?
Thanks for the answers, btw, I find economics very interesting but I never progressed very far with them in school.
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One of the major factors is foreign investors.
With a lower rate, less foreign investors are going to buy debt in the united states. It makes our dollar far more attractive for a foreign investor who wants to have money in a stable western country.