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If a Nation's Interest Rates Steadily Increases Compared to Those

Question 136

Multiple Choice

If a nation's interest rates steadily increases compared to those of other countries, then the exchange rate of its currency will tend to:


A) appreciate as the demand for its currency decreases.
B) depreciate as the demand for its currency increases.
C) appreciate as the demand for its currency increases.
D) depreciate as the demand for its currency decreases.

Correct Answer:

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