Why does a government lower interest rates to affect the value of the currency?
A) To strengthen the value of the currency in the world market
B) To make goods cheaper and more attractive in the world market
C) To stimulate inflation
D) To increase the number of foreign imports, thereby increasing trade
E) To offset the price of must-have commodities, such as oil
Answer: B
Explanation: B) The raising of interest rates tends to increase an economic system's currency value, whereas lowering the rate has the opposite effect.
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