Question

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.

Answer 1

It is D.

Step-by-step explanation:

i just took the test :)

Answer 2

The answer is D. the value of the currency is likely to increase.

The more GDP a country could produce, the more its currency value will increase. By increasing interest rate, that country will attract more investors. More investors means that that country will have more fund to increase its total production , which will increase its GDP