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MMLU / Suppose the real interest rate in a country rises. What can be expected to…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Suppose the real interest rate in a country rises. What can be expected to happen to the demand for this nation's currency and therefore the value of its currency and net exports? Demand for currency      Value of currency      Net exports

choices

  1. Decreases           Appreciate      Decreases
  2. Decreases           Depreciate      Decreases
  3. Decreases           Depreciate      Increases
  4. Increases           Appreciate      Increases

subject

high_school_macroeconomics

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Source and history

Official source

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