A decrease in the interest rates in foreign counties would cause a shift to the left in the demand for the foreign currency.

Question

Quizplus · Accepted Answer

A decrease in interest rates in foreign countries typically makes investments in those countries less attractive, leading to a decrease in demand for their currencies. However, this scenario would not cause a shift to the left in the demand curve for the foreign currency; instead, it might lead to a decrease in its value or a shift in the supply curve, depending on various factors. The demand curve represents the desire to hold or buy the currency, which can be influenced by many factors, not just shifts.

A Decrease in the Interest Rates in Foreign Counties Would