Under a flexible exchange rates, rise in the domestic real interest rate would cause a in net financial inflows and a ____________ in the exchange rate (foreign currency relative to domestic currency). fall; rise rise; fall fall; fall rise; rise Question 4 (16.67 points) Saved The last time The Economist checked, a Big Mac costs $5.36 in the US while it costs 17.75 zloty (PLN) in Poland. If the actual exchange rate is 4.34 PLN/USD, then the Polish Zloty is percent so that relative to the (Big Mac) PPP. The Polish Zloty should change by ___ we reach the Law of One Price (Purchasing Power Parity) for the Big Mac. a. Undervalued; -23.7% b. Undervalued; -76.3% c. Overvalued; +23.7% d. Overvalued; +76.3%