16. In the following diagram, the quantity of British Pounds is plotted on the X- axis and the exchange rate (in direct quotation from the U.S. perspective) between the $ and is plotted on the Y-axis. In the initial equilibrium (the intersection of So and Do) the exchange rate is ro. However, it drops to r1 as supply curve shifts to the right and demand curve shifts to the left. Which of the following events are likely to cause those shifts and result in a lower equilibrium exchange rate? $/ Quantity of U.S. inflation increases while British inflation remains the same British income level decreases while U.S. income level remains unchanged None of the above O U.S. income level increases while the British income level remains unchanged Inflation in Britain increases while U.S. inflation stays the same