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 pounds6)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 pounds7)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 pounds8)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
