Assuming exchange rates are allowed 10 fluctuate
freely, which one of the following factors would likely cause
a nation's currency to appreciate on the foreign exchange
market? •
a. A relatively rapid rate of growth in income that
stimulates imports.
b. A high rate of inflation relative to other countries.
c. A slower rate of growth in income than in other
countries, which causes imports to lag behind exports.
d. Domestic real interest rates that are lower than real
interest rates abroad.
Is letter C but not make me sense.