Which of the following statements accurately describe the effects of rising interest rates in the European Union on capital flows and currency demand? (Select all that apply)

When interest rates rise in the European Union, it usually makes investments in that region more attractive to investors. Higher interest rates often lead to higher returns on savings and investments, so people from other countries might want to invest their money in the EU. This can increase the demand for the euro, the currency used in the EU, because investors need euros to make those investments. For example, if an American investor sees that European bonds have higher interest rates, they may convert their dollars into euros to buy those bonds, leading to an increase in euro demand. Overall, rising interest rates can lead to more capital flowing into the EU and a stronger euro.