21. According to the Monetary Model of Exchange Rate determination, a relative increase in U.S. interest rates will: A. Increase US consumers' demand for money B. Lead to an appreciation of the US\$ C. Lead to a depreciation of the US\$ D. Lead to a depreciation of the foreign currency 22. According to the Traditional Model of Exchange Rate determination, an increase in relative real incomes in the US, will: A. Lead to an appreciation of the US\$ B. Lead to a depreciation of the US\$ C. Decrease US consumers' consumption of imported goods D. Decrease US consumers' consumption of domestic goods. 23. According to the Monetary Model of Exchange Rate determination, a relative increase in US money supply: A. Unlike the Traditional Model, leads to a depreciation of the domestic currency (US\$) B. Unlike the Traditional Model, leads to an appreciation of the domestic currency C. Similar to the Traditional Model, leads to a depreciation of the foreign currency D. Similar to the Traditional Model, leads to a depreciation of the domestic currency 24. According to the Traditional Model of exchange rate determination, the US dollar will depreciate if: A. US prices and real incomes decrease relative to its trading partners B. US interest rates increase relative to interest rates in other countries C. US prices increase and interest rates decrease D. US incomes decrease and interest rates increase E. US real incomes decrease and US interest rates increase 25. According to the Monetary Model, the US dollar will appreciate if: A. US prices and real incomes increase relative to its trading partners B. US interest rates increase relative to interest rates in other countries C. US real incomes decrease and interest rates increase D. US real incomes decrease and US interest rates decrease E. None of the Above