Which One of the Following Would Cause an Appreciation of the Exchange

Multiple Choice

Which one of the following would cause an appreciation of the exchange rate (in each case assume that nothing else changes) ?

A) A reduction in the rate of interest
B) Speculation that the rate of interest will fall
C) An increase in domestic incomes
D) A reduction in the current account deficit (and no change in the other parts of the balance of payments)
E) Inflation increases relative to inflation rates abroad