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Consider the asset approach. What happens to the exchange rate when the interest rate of deposits denominated in the home currency falls? a.The foreign currency

Consider the asset approach. What happens to the exchange rate when the interest rate of deposits denominated in the home currency falls?

a.The foreign currency depreciates against the home currency.

b.The home currency appreciates against the foreign currency.

c.The home currency depreciates against the foreign currency.

d.Home and foreign currencies appreciate at the same time.

e.Nothing happens.

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