8) Which of the following statement is correct? A) an interest rate rise is associated with a short-run appreciation of the currency and higher expected inflation. and B) an interest rate rise is associated with a short-run depreciation of the currency lower expected inflation. C) an interest rate rise is associated with a long-run appreciation of the currency and lower expected inflation. D) an interest rate rise is associated with a long-run depreciation of the currency and higher expected inflation.

8) Which of the following statement is correct? A) an interest rate rise is associated with a short-run appreciation of the currency and higher expected inflation. B) an interest rate rise is associated with a short-run depreciation of the currency and lower expected inflation. C) an interest rate rise is associated with a long-run appreciation of the currency and lower expected inflation. D) an interest rate rise is associated with a long-run depreciation of the currency and higher expected inflation