How might an increase in interest rates lead to fall in a country's exchange rate?

অন্যান্য International Economics 07 Oct, 2020

প্রশ্ন How might an increase in interest rates lead to fall in a country's exchange rate?

  • ক.
    It will produce a net inflow of short-term capital
  • খ.
    It will cause inflation to fall thereby improving the country's competitiveness
  • গ.
    It will depress economic activity leading to a fall in imports
  • ঘ.
    It will harm the economy's growth prospects leading to a decrease in inward investment

সঠিক উত্তর

It will harm the economy's growth prospects leading to a decrease in inward investment

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