News answer and why other options are incorrect.thank you!! In a flexible exchange rate regime, a reduction in the foreign interest rate (i*) will cause     the IP curve to shift to the left/up.     a movement along the IP curve.     the IP curve to shift to the right/down.     neither a shift nor movement along the IP curve.

Microeconomics
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ISBN:9781337617406
Author:Roger A. Arnold
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Chapter21: International Finance
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News answer and why other options are incorrect.thank you!!

In a flexible exchange rate regime, a reduction in the foreign interest rate (i*) will cause

   

the IP curve to shift to the left/up.

   

a movement along the IP curve.

   

the IP curve to shift to the right/down.

   

neither a shift nor movement along the IP curve.

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