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16.2 Demand and supply shifts in foreign exchange markets  (Page 12/15)

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  • Card 12 / 15:
    If a country’s currency is expected to appreciate in value, what would you think will be the impact of expected exchange rates on yields (e.g., the interest rate paid on government bonds) in that country? Hint : Think about how expected exchange rate changes and interest rates affect demand and supply for a currency.

    The course author didn't provide an answer for this question

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Source:  OpenStax, Macroeconomics. OpenStax CNX. Jun 16, 2014 Download for free at http://legacy.cnx.org/content/col11626/1.10
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