Answer: Net Inflow / Appreciate / Decrease
Explanation:
When interest rates rise in an Economy relative to the rest of the world ceteris paribus, it has the effect of increasing the value of the Currency of the country in question.
This is because more people will want to invest in the country to take advantage of the higher interest rates. This Net Inflow of Financial Capital will lead to more demand for the American dollar which will as earlier mentioned, cause it to appreciate according to the laws of Demand and Supply.
As a result of the Dollar being stronger, US exports will be more expensive as they are quoted in dollars. Less people will buy it so US exports will decrease leading to a Decrease in Net Exports.
