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Suppose Interest Rates Fall in Country A

Question 125

Multiple Choice

Suppose interest rates fall in Country A.Other things constant, what will happen to the demand for Country A's currency?  


A)  Demand for Country A's currency will fall, and the currency will depreciate. 
B)  Demand for Country A's currency will fall, and the currency will appreciate. 
C)  Demand for Country A's currency will rise, and the currency will depreciate. 
D)  Demand for Country A's currency will rise, and the currency will appreciate.

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