Suppose Two Countries,A and B,are Trading with Each Other

Multiple Choice

Suppose two countries,A and B,are trading with each other.Suppose also that the rate of inflation in B is higher than in A.There will be

A) an increase in the demand for Country B's currency in the foreign-exchange market.
B) an increase in Country B's exports.
C) a decrease in Country B's imports.
D) an increase in the supply of Country B's currency in the foreign-exchange market.
E) no effect on the foreign-exchange market.