Under a flexible exchange rates, rise in the domestic real interest rate would cause a in the exchange rate (foreign currency relative to in net financial inflows and a domestic currency). fall; rise rise; fall fall; fall rise; rise

Under a flexible exchange rates, rise in the domestic real interest rate would cause a in the exchange rate (foreign currency relative to in net financial inflows and a domestic currency). fall; rise rise; fall fall; fall rise; rise

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: International Finance

Section: Chapter Questions

Problem 10QP

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Question

please highlight the correct answer and explain why it is correct

Under a flexible exchange rates, rise in the domestic real interest rate would cause a
in the exchange rate (foreign currency relative to
in net financial inflows and a
domestic currency).
fall; rise
rise; fall
fall; fall
rise; rise

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