If Inflation Is Higher in the United States Than in the United

Multiple Choice

If inflation is higher in the United States than in the United Kingdom:

A) the dollar should appreciate to the pound.
B) the dollar should depreciate to the pound.
C) real interest rates should be higher in the United States than in the United Kingdom.
D) the U.S. net exports to the United Kingdom should fall.
E) pounds will flow to the United States from the United Kingdom.