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Assume that the inflation rate becomes much lower in the Uni…
Assume that the inflation rate becomes much lower in the United Kingdom relative to the United States. This will place ____ pressure on the value of the British pound. Also, assume that U.K. interest rates begin to drop relative to U.S. interest rates. The change in interest rates will place ____ pressure on the value of the British pound. (Consider each change independently.)
Assume that the inflation rate becomes much lower in the Uni…