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Real interest rates and international capital flows

AP.MACRO: MKT‑5.F (LO), MKT‑5.F.1 (EK), MKT‑5.F.2 (EK)


An increase in the savings rates in Johnsrudia has affected the market for loanable funds.
What effect does this have on real interest rates and the value of Johnsrudia's currency?
Choose 1 answer: