Top Posters
Since Sunday
7
j
7
s
7
e
6
6
b
6
f
6
s
6
6
j
5
n
5
p
5
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
mitch44 mitch44
wrote...
Go to Answer
Posts: 69
Rep: 0 0
A month ago
How do changes in interest rates affect exchange rates?
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
Read 31 times
1 Reply
Replies
Answer verified by a subject expert
BlondieXBlondieX
wrote...
#1
Posts: 54
Rep: 0 0
A month ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
Changes in interest rates affect the value of a country's currency with respect to other currencies. When the interest rate in an economy increases, investors want to invest in the economy. This increases the demand for the domestic currency, causing it to appreciate against other currencies in the foreign exchange market. In contrast, when interest rate decreases in an economy, the country's currency depreciates.
1

Related Topics

mitch44 Author
wrote...

A month ago
Good timing, thanks!
dearsophia21
wrote...

Yesterday
this is exactly what I needed
bbbbbbbh
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  318 People Browsing
 485 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 262
  
 253
  
 84
Your Opinion
Where do you get your textbooks?
Votes: 212
Previous poll results: Should Ph.D.'s be addressed as doctors?