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Changes in the foreign exchange markets and net exports

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


The central bank of Johnsrudia engaged in contractionary monetary policy that lead to an increase in interest rates.
What will happen to the value of Johnsrudia’s currency, its imports, and its exports?
Choose 1 answer: