5)
If it is expected that inflation in the US will increase relative to inflation in the UK, this would cause the US dollar to _________ against the UK pound because of _____________
(2pts)
depreciate an increase in the demand for pounds
depreciate an increase in the supply of pounds
appreciate a decrease in the supply of pounds
appreciate a decrease in the demand for pounds
6)
The imposition of a tariff by the UK on imports from the US would cause the US dollar to _________ against the UK pound because of _____________
(2pts)
appreciate a increase in the supply of pounds
depreciate an increase in the demand for pounds
appreciate a decrease in the demand for pounds
depreciate an decrease in the supply of pounds
7)
If the interest rate in the US rises while the interest rate in the UK remains constant, the US dollar will __________ against the UK pound because of ____________________
(2pts)
depreciate an increase in the demand for pounds
appreciate an increase in the supply of pounds
depreciate a decrease in the supply of pounds
appreciate an increase in the demand for pounds
8)
If everyone expects the US dollar to appreciate against the UK pound in the near future, the US dollar will immediately__________ against the UK pound because of ____________________
(2pts)
depreciate an increase in the demand for pounds
appreciate a increase in the supply for pounds
appreciate an increase in the demand for pounds
depreciate a decrease in the supply of pounds
