5. If a country has a floating exchange rate and some event leads people to believe that...

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5. If a country has a floating exchange rate and some event leads people to believe that its currency will be worth less in the future, then today the interest rate in that country will , and its currency will .

a. increase, appreciate

b. increase, depreciate

c. decrease, appreciate

d. decrease, depreciate

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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