When the "Real" Interest Rate Is Relatively Low in a Given

Multiple Choice

When the "real" interest rate is relatively low in a given country, then the currency of that country is typically expected to be:​

A) ​weak, since the country's quoted interest rate would be high relative to the inflation rate.
B) ​strong, since the country's quoted interest rate would be low relative to the inflation rate.
C) ​strong, since the country's quoted interest rate would be high relative to the inflation rate.
D) ​weak, since the country's quoted interest rate would be low relative to the inflation rate.