If a nation's interest rates steadily increases compared to those of other countries, then the exchange...

If a nation's interest rates steadily increases compared to those of other countries, then the exchange rate of its currency will tend to

appreciate as the demand for its currency decreases.

depreciate as the demand for its currency increases.

appreciate as the demand for its currency increases.

depreciate as the demand for its currency decreases.

Expert Solution

Rahul Sunny answered 2 years ago

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