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Using any exchange rate graphs: Part A: Illustrate how a rise in the real foreign interest rate causes the domestic currency to depreciate. Part B:

Using any exchange rate graphs: Part A: Illustrate how a rise in the real foreign interest rate causes the domestic currency to depreciate. Part B: Illustrate how a fall in the foreign real interest rate causes the domestic currency to appreciate. Make sure to properly label all parts of the graph for full credit.

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Part A Rise in the Real Foreign Interest Rate Causes Domestic Currency Depreciation To illustrate this you would typically use a standard supply and d... blur-text-image

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