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Which of the following describes a situation when the interest rate in Country A is higher than the interest rate in Country B? (Think straight;
Which of the following describes a situation when the interest rate in Country A is higher than the interest rate in Country B? (Think straight; this question)
a. the exchange rate in country A does not change
b. the exchange rate in country B will increase as the demand for foreign currency increases
c. the exchange rate in country A will fall when the supply of foreign currency falls
d. the exchange rate in country B will fall when the supply of foreign currency falls
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