Which of the following would both raise the U.S. exchange rate?

Question

Which of the following would both raise the U.S. exchange rate?

a. capital flight from other countries to the U.S. occurs and the
U.S. moves from budget surplus to budget deficit

b. capital flight from other countries to the U.S. occurs and the
U.S. moves from budget deficit to budget surplus

c. capital flight from the U.S. to other countries occurs, the
U.S. moves from budget surplus to budget deficit

d. capital flight from U.S. to other countries occurs, the U.S. moves from budget deficit to budget surplus

Answer 1

b