In the Foreign Exchange Market, Pounds Per Dollar Is on the Y

Multiple Choice

In the foreign exchange market, pounds per dollar is on the y axis and quantity of dollars is on the x axis. If the interest rate in the United States rises above the rate in the United Kingdom at the same time that U.S. consumers want more British goods, then the dollar will _____, and the pound will _____ if the interest rate effect is larger.

A) appreciate; appreciate
B) appreciate; depreciate
C) depreciate; appreciate
D) depreciate; depreciate