Which of the following statements are true,and which are false? Briefly explain your answers.
(A)The dollar value of the domestic currency will increase when U.S.interest rates decline.
(B)When the rate of inflation falls,the central bank typically raises the interest rate.
(C)A lower interest rate typically leads to higher net exports because a lower interest rate lowers the value of the dollar.
(D)A decline in the interest rate will reduce investment.
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