When attempting price regulation, a government faces what problem(s)?

If the U.S. interest rate is 4% per year and the U.K. interest rate is 9% per year, which of the following statements is TRUE?

a. The dollar will depreciate 4% in one year. b. The pound will depreciate 9% in one year. c. The pound will appreciate 5% in one year. d. The dollar will appreciate 4% in one year.

Refer to Figure 9.2. A movement from point b to point a could be caused by a(n)

A) increase in government spending. B) decrease in the price of oil. C) increase in taxes. D) a massive crop failure.