Question: 5. Everything else held constant, if real interest rates in the US would increase by 1% while the real interest rate in UK would increase

5. Everything else held constant, if real interest rates in the

5. Everything else held constant, if real interest rates in the US would increase by 1% while the real interest rate in UK would increase by 0.5%, then: a. Dollar would depreciate against Pound. b. Supply of pounds would increase in the FX market. c. Demand of pounds would increase in the FX market. d. Pound would appreciate against Dollar. 6. Everything else held constant, if inflation rate increase in the US is 3% while the British inflation rate increase is 2%, then: a. US exports to UK would increase b. US imports from UK would decrease c. Dollar would appreciate against Pound d Pound would appreciate against Dollar 7, The Swiss franc depreciated by 17% against the US. dollar. This is equivalent to an appreciation of the dollar against the Swiss franc by: a, 17% b. 16.31% e. 20.48% d 17.54%

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