The equilibrium interest rate determined in the IS-LM model will give rise to an implied exchange rate in an open economy. Which one of the following statements regarding this relationship is INCORRECT?  (a)  The interest parity condition implies that there is a positive relationship between the domestic interest rate and the exchange rate;  (b)  An increase in the interest rate will cause an upward movement along the IS curve and the exchange rate will appreciate;  (c)  A decrease in the interest rate will result in an upward shift of the LM curve and the exchange rate will appreciate;  (d)  A decrease in the interest rate will result in a downward shift of the LM curve and the exchange rate will depreciate.

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