(4 pts) Complete the following sentences with the most appropriate answers. If domestic inflation is higher than foreign inflation, and if the domestic country has a fixed exchange rate, the real exchange rate EF/D (i. increases / decreases / does not change / may change in any direction). Assume that the Marshall-Lerner condition holds. Then, the trade balance (ii. improves / deteriorates / does not change / may change in any direction). ii increases deteriorates