?

Free Version

Upgrade subject to access all content

Difficult

Real Interest Rates and Foreign Exchange Rates

APMACR-VPT53Y

If real interest rates in the European Union increase, what will happen to the international value of the Euro and international trade in Europe?

A

Euro will appreciate, net exports will fall.

B

Euro will depreciate, net exports will increase.

C

Euro will appreciate, net exports will increase.

D

Euro will depreciate, net exports will fall.

E

Euro will appreciate, net exports will remain unchanged.