Please help Valdemar is a small, open economy. If theworld real interest rate increases, in thelong run, which of the following results canbe obtained in Valdemar?I.A real depreciation of Valdemar'scurrency.II. Lower investments.Select one:Oa.b.O d.Option I is correctBoth Options I and II are incorrect.Both Options I and II are correct.Option II is correct.

In the international market, Anu change in the interest rate of a country will affect the demand for…

Valdemar is a small, open economy. If the world real interest rate increases, in the long run, which of the following results can be obtained in Valdemar? I. currency. II. Lower investments. Select one: a. A real depreciation of Valdemar's O b. O c. d. Option I is correct Both Options I and II are incorrect. Both Options I and II are correct. Option II is correct.