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

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 a
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Question

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Increasing domestic interest rates typically leads to an appreciation of the currency under a flexible exchange rate system, as higher rates attract foreign capital, increasing demand for the currency.

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