What is the effect of higher interest rates on exchange rate

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Problem 1: In the short run, what is the effect of higher interest rates on exchange rates

Select one:

A. our currency depreciates, which increases NX, and contributes to AD shifting rightward.

B. our currency appreciates, which increases NX, and contributes to AS shifting rightward

C. our currency appreciates, which reduces NX, and contributes to AD shifting leftward

D. our currency depreciates, which reduces NX, and contributes to AD shifting leftward.

Reference no: EM132969706

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