If a country attracts foreign investors by raising its interest rates, what is likely to happen?

a. The country's exports are likely to increase.

b. The country is likely to create a tariff.

c. The inflation rate in the country is likely to increase.

d. The value of the currency is likely to increase.

Question

Rudy Patel

English

2 July, 22:59

If a country attracts foreign investors by raising its interest rates, what is likely to happen?

a. The country's exports are likely to increase.

b. The country is likely to create a tariff.

c. The inflation rate in the country is likely to increase.

d. The value of the currency is likely to increase.

+2

Answers (1)

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Deven Martin · Answer 1

The best answer is D. If a country attracts foreign investors by raising its interest rates, the value of the currency is likely to increase. Foreign investors buy goods and products from the country they are investing therefore they need their currency and demand it. As a result price and the value of the currency of that country will, of course, increase.

If a country attracts foreign investors by raising its interest rates, what is likely to happen?a. The country's exports are likely to increase.b. The country is likely to create a tariff.c. The inflation rate in the country is likely to increase.d. The value of the currency is likely to increase.