You read in the business press that real, risk-adjusted interest rates in Switzerland have decreased relative to interest rates in the United Kingdom. What will happen in the foreign exchange market and thus in the goods market?

a. The Swiss franc will appreciate relative to the pound and the British will have to pay more pounds to buy Swiss watches.

b. The British pound will depreciate and thus British tourists will have to pay more pounds for their hotel stays in Switzerland.

c. Both a and b are correct.

d. None of the above.