8. Explain why you agree or disagree with the following statements.

Assume other things equal. LO27.3

a. A country that grows faster than its major trading partners can expect the international value of its currency to depreciate.

b. A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.

c. A country’s currency will appreciate if its inflation rate is less than that of the rest of the world.