A decrease in the interest rates in a country ________.

Question

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When interest rates decrease in a country, it becomes cheaper for consumers and businesses to borrow money. This leads to an increase in spending and investment, which leads to an increase in aggregate demand for goods and services, including exports. As a result, net exports increase, leading to a higher demand for the country's currency and a higher exchange rate. This can make exports more expensive, but the overall effect is still an increase in net exports. Additionally, the decrease in interest rates can also make holding that country's currency less attractive for foreign investors, leading to a decrease in capital inflows.

A Decrease in the Interest Rates in a Country ________