Which of the following policies help to raise interest rate unambiguously and thereby lead to appreciation of currency?

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Q: 15 (CDS-I/2023)
Which of the following policies help to raise interest rate unambiguously and thereby lead to appreciation of currency?

question_subject: 

Economics

question_exam: 

CDS-I

Contractionary fiscal and monetary policies typically raise interest rates by reducing money supply and government spending, which can lead to currency appreciation as higher interest rates attract foreign capital.