Q
If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?
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A
A. Depreciate under a system of fixed exchange rates
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B
B. Depreciate under a system of floating exchange rates
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C
C. Appreciate under a system of floating exchange rates
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D
D. Appreciate under a system of floating fixed rates
Correct Answer:
B. B. Depreciate under a system of floating exchange rates
