Answer the question by filling in the sentence between the two options in the brackets Suppose the domestic nominal interest rate rises due to increase in expected inflation. there will be (rise or decline) in the expected appreciation of the dollar The change in the expected appreciation of the dollar is (smaller or larger) than the increase in the domestic nominal interest rate As a result of answers. At any given exchange rate, the relative expected return on domestic assets (rise or falls) The demand curve for domestic assets shifts (left or right) the domestic currency (appreciates or depreciates)