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Drag the tiles to the correct boxes to complete the pairs.
Match each cause with the effect it has on an economy.
higher interest rates in a country
lower currency value
decrease in exports
more foreign investment in a country
cultural imperialism
increase in exports


higher currency value
more people adopting foreign clothing styles

1 Answer

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Final answer:

Higher interest rates in a country result in lower currency value and a decrease in exports, while more foreign investment leads to a higher currency value. Cultural imperialism does not directly relate to the cause and effect relationship between interest rates and the economy.

Step-by-step explanation:

Higher interest rates in a country have a direct effect on the currency value. When interest rates increase, foreign investors are more likely to invest in that country, which increases the demand for the country's currency and raises its value.

On the other hand, a lower currency value is an effect of higher interest rates in a country. When interest rates are high, foreign investors may be less inclined to invest in the country, which reduces the demand for the currency and leads to a decrease in its value.

Lastly, an increase in exports is an effect of lower currency value. When a country's currency is low, its exports become cheaper for foreign buyers, making them more attractive and leading to an increase in exports.

User Thomas Chemineau
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