Whenever U.S. government spending increases, thereby increasing the demand for real balances and the rate of interest, the currency will appreciate and there is a potential for:

While the world was fairly integrated at the turn of the last century, most trade was in agricultural and raw materials, whereas today manufactured consumer and producer goods play a much greater role in determining exports and imports

Indicate whether the statement is true or false

If the U.S. interest rate falls while the British interest rate remains constant, which of the following will happen in the market for pounds?

a. A rightward shift of the demand curve, a leftward shift of the supply curve, and an appreciation of the pound b. A leftward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the pound c. A leftward shift of the demand curve, a leftward shift of the supply curve, and a depreciation of the pound d. A rightward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the pound e. A leftward shift of the demand curve, a rightward shift of the supply curve, and a depreciation of the pound.