1 thought on “Describe how the prevailing interest rates in a country affect its exchange rates with the <br /><br />currency of its major tradi”
Explanation:
Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise.
Explanation:
Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise.