... likely to get it in a state of high interest ratesAlthough much of it is contained within consumers' perception of the economy and their income, interest rates can drive up consumer spending, ... result of their lower real rates of return. Foreigners will reduce their positions in domestic bonds, real estate, stocks and other assets. The financial account (or balance on capital account) ... another, and therefore from one currency to another. Higher interest rates in the United States will, all other things remaining constant, prompt an increase in the value of the dollar. Conversely,...