How does an increase in the domestic interest rate affect the domestic currency?

a.

It causes an increase in the supply and a decrease in the demand for the domestic currency

b.

It causes an increase in the demand for foreign financial assets as their return on investment rises

c.

It causes a depreciation of the value of the domestic currency relative to the values of foreign currencies

d.

It causes an increase in the demand for the domestic currency as foreign investors want to purchase more of the domestic financial assets