Determining short$-$run exchange rates

Consider two countries with friendly trade relations, South Africa and India. Suppose that the real interest rate in South Africa decreases relative to India.

Show how the change in the real interest rate affects the equilibrium exchange rate by shifting one or both of the curves on the graph.

Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.

QUANTITY $($Millions of rupees$)$

As a result of the change in the real interest rate, the South African rand appreciated $$ in value relative to the Indian rupee.