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
Chapter1: Making Economics Decisions
Section: Chapter Questions
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please highlight the correct answer and explain why it is correct

Transcribed Image Text: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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