An appreciation of the currency would be associated with _____ interest rates and capital _____.

Name: An appreciation of the currency would be associated with _____ interest rates and capital _____.
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Question

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An appreciation of the currency is often associated with higher interest rates, as higher rates attract foreign capital, leading to capital inflows. Higher interest rates make investments in that currency more attractive, increasing demand for the currency and causing it to appreciate.

An Appreciation of the Currency Would Be Associated with _____