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.