Question

Which of the following could cause a country's real interest rate to increase and its currency to appreciate? Please Choosing an option pls make sure is one of the following provided.

1. Deficit spending

2. A decrease in spending

3. A decrease in consumer spending

Answer 1

Deficit Spending

Step-by-step explanation:

So deficit spending would increase the RIR and appreciate the country's currency. Hence this is the correct option.