If Interest Rates in Australia Rise, Ceteris Paribus, the Value

Multiple Choice

If interest rates in Australia rise, ceteris paribus, the value of the Australian dollar will:

A) rise as foreign investors increase their holdings of Australian investments.
B) rise as foreign investors decrease their holdings of Australian investments.
C) fall as foreign investors increase their holdings of Australian investments.
D) fall as foreign investors decrease their holdings of Australian investments.