If a nation's interest rates are relatively low compared to those of other countries, then the exchange value of its currency will tend to

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When a nation's interest rates are relatively low compared to those of other countries, investors may seek higher returns by investing their money in other countries with higher interest rates, leading to a decrease in demand for the nation's currency and a depreciation in its exchange value. This is more likely to happen under a system of floating exchange rates, as the currency's value is determined by the market forces of supply and demand.

If a Nation's Interest Rates Are Relatively Low Compared to Those