In a flexible exchange rate regime,an increase in the foreign interest rate (i*)will cause
A)the IP curve to shift to the left / up.
B)the IP curve to shift to the right / down.
C)a movement along the IP curve.
D)neither a shift nor movement along the IP curve.

Question

Quizplus · Accepted Answer

The Answer of In a flexible exchange rate regime,an increase in the foreign interest rate (i*)will cause
A)the IP curve to shift to the left / up.
B)the IP curve to shift to the right / down.
C)a movement along the IP curve.
D)neither a shift nor movement along the IP curve.

In a Flexible Exchange Rate Regime,an Increase in the Foreign