In a flexible exchange rate regime,a reduction in the foreign interest rate (i*)will cause
A)the IP curve to shift to the left / up.
B)the IP curve to shift to the right / down.
C)a movement along the IP curve.
D)neither a shift nor movement along the IP curve.

Question

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The Answer of In a flexible exchange rate regime,a reduction in the foreign interest rate (i*)will cause
A)the IP curve to shift to the left / up.
B)the IP curve to shift to the right / down.
C)a movement along the IP curve.
D)neither a shift nor movement along the IP curve.

In a Flexible Exchange Rate Regime,a Reduction in the Foreign