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    International Economics Study Set 12
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    Exam 12: Exchange Rate Determination
  5. Question
    Under Floating Exchange Rates, Relatively Low Domestic Interest Rates Tend
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Under Floating Exchange Rates, Relatively Low Domestic Interest Rates Tend

Question 115

Question 115

True/False

Under floating exchange rates, relatively low domestic interest rates tend to promote the depreciation of a currency's exchange value, while relatively high domestic interest rates lead to currency appreciation.

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