A country with lower interest rates than another country is likely to see its currency appreciate if parity holds.

Name: A country with lower interest rates than another country is likely to see its currency appreciate if parity holds.
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Question

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When interest rates are lower in one country than in another, investors are more likely to move their money to the country with higher interest rates. This increased demand for the currency of the country with higher interest rates will cause its value to appreciate.

A Country with Lower Interest Rates Than Another Country Is