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    Exam 16: Foreign Exchange: Factors That Influence the Exchange Rate
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    If Foreign Interest Rates Increase Relative to Australian Rates,the Demand
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If Foreign Interest Rates Increase Relative to Australian Rates,the Demand

Question 76

Question 76

Multiple Choice

If foreign interest rates increase relative to Australian rates,the demand for domestic currency:


A) falls, causing it to appreciate.
B) rises, causing it to appreciate.
C) rises, causing it to depreciate.
D) falls, causing it to depreciate.

Correct Answer:

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