Assume that there is a free-floating exchange rate. Will the following cause the exchange rate to appreciate or depreciate? In each case you should consider whether there is a shift in the demand or supply curves of sterling (or both) and which way the curve(s) shift(s).

(a) More electronic goods are imported from Japan.

Demand curve shifts left/shifts right/does not shift Supply curve shifts left/shifts right/does not shift Exchange rate appreciates/depreciates

(b) UK interest rates rise relative to those abroad.

Demand curve shifts left/shifts right/does not shift Supply curve shifts left/shifts right/does not shift Exchange rate appreciates/depreciates

(c) The UK experiences a higher rate of inflation than other countries.

Demand curve shifts left/shifts right/does not shift Supply curve shifts left/shifts right/does not shift Exchange rate appreciates/depreciates

(d) Speculators believe that the rate of exchange will appreciate.

Demand curve shifts left/shifts right/does not shift Supply curve shifts left/shifts right/does not shift Exchange rate appreciates/depreciates