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.
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.
Chapter21: International Finance
Section: Chapter Questions
Problem 4QP
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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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