If a nation's central bank increased domestic interest rates, the nation's exchange rate would change if the country's exchange rate was

Name: If a nation's central bank increased domestic interest rates, the nation's exchange rate would change if the country's exchange rate was
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In a flexible exchange rate system, the exchange rate is determined by market forces. An increase in domestic interest rates would attract foreign capital, leading to an appreciation of the nation's currency.

If a Nation's Central Bank Increased Domestic Interest Rates, the Nation's