Other things being equal, if interest rates go up in a country, all of the following will tend to happen in its domestic economy EXCEPT

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When interest rates go up in a country, it typically leads to an increased exchange value of the country's currency, not a decrease. Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise. The other options (B, C, and D) are typical consequences of higher interest rates: they can dampen economic activity by making borrowing more expensive, increase the fiscal cost of servicing national debt, and stimulate imports by making the currency stronger and foreign goods cheaper.

Other Things Being Equal, If Interest Rates Go Up in a Country