Introduction:
Inflation, interest rates, exchange rates, foreign investment, consumer spending, and economic growth are all interconnected factors in an economy. Understanding their relationship is crucial for policymakers and investors. This question focuses on the relationship between inflation, interest rates, exchange rates, foreign investment, consumer spending, and economic growth.

Statement 1: Inflation is closely related to interest rates, which can influence exchange rates.
Inflation and interest rates have a close relationship. When inflation rises, central banks often respond by increasing interest rates to curb inflationary pressures. Higher interest rates make borrowing more expensive, which reduces consumer spending and investment. This, in turn, can lead to a decrease in aggregate demand and a decrease in inflation. Additionally, interest rates can influence exchange rates. Higher interest rates attract foreign investors seeking higher returns on their investments, which increases the demand for the domestic currency and leads to an appreciation of the exchange rate. Conversely, lower interest rates can discourage foreign investment, leading to a depreciation of the exchange rate.

Statement 2: Low interest rates most commonly attract foreign investment.
Low interest rates can attract foreign investment for several reasons. Firstly, when interest rates are low, borrowing becomes cheaper, making it easier for businesses to access credit and expand their operations. This increased investment can stimulate economic growth. Secondly, low interest rates reduce the return on investment in domestic assets, making foreign assets relatively more attractive. Foreign investors may seek higher returns by investing in countries with lower interest rates. Lastly, low interest rates can weaken the domestic currency, making exports more competitive and increasing the demand for domestic goods and services. This can attract foreign investment.

Statement 3: Low interest rates spur consumer spending and economic growth.
Low interest rates can spur consumer spending and economic growth. When interest rates are low, borrowing costs decrease, making it cheaper for consumers to finance purchases such as homes, cars, and other durable goods. This can lead to an increase in consumer spending, which drives economic growth. Additionally, low interest rates can incentivize businesses to invest in new projects, expand operations, and hire more workers. This increased investment and employment can further stimulate economic growth.

Conclusion:
All three statements are correct. Inflation and interest rates are closely related, and interest rates can influence exchange rates. Low interest rates can attract foreign investment, and they can also spur consumer spending and economic growth. These relationships highlight the importance of considering the interplay between inflation, interest rates, exchange rates, foreign investment, consumer spending, and economic growth when analyzing and making decisions in an economy.