If a nationʹs central bank increased domestic interest rates, the nationʹs exchange rate would change if the countryʹs exchange rate was a

Name: If a nationʹs central bank increased domestic interest rates, the nationʹs exchange rate would change if the countryʹs exchange rate was a
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Question

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In a flexible exchange rate system, the exchange rate is determined by market forces, and an increase in domestic interest rates would likely lead to an appreciation of the currency as it attracts foreign capital.

If a Nationʹs Central Bank Increased Domestic Interest Rates, the Nationʹs