According to the FX Loanable Funds Model, an increase in the compulsory rate of contributions into superannuation is expected to?

a.

increase the domestic real interest rate and increase the real exchange rate of the Australian dollar.

b.

increasethe domestic real interest rate anddecreasethe real exchange rate of the Australian dollar.

c.

decreasethe domestic real interest rate andincreasethe real exchange rate of the Australian dollar.

d.

decreasethe domestic real interest rate anddecreasethe real exchange rate of the Australian dollar.

e.

not change the domestic real interest rate and increase the real exchange rate of the Australian dollar.

f.

not changethe domestic real interest rate and decreasethe real exchange rate of the Australian dollar.