profil

spurries: this through me off too. totally would be fine with the Q if it said real int rate. apparently schweser book one page 299 says that an increase in NOMINAL rates cauess a currency to appreciate as demand for it rises. i then went to schweser errata and low and behold, it says this is an error and the nominal should be changed to real.
so in short, this Q is incorrect. if it said real it would be fine.
if the Q is intended to say nominal, can anyone advise what the effects would be on all the factors above?