Assume that the New Zealand inflation rate is higher than the U$.$S$.$ inflation rate. This will cause U$.$S$.$ consumers to $\_\_\_\_$ their imports from New Zealand and New Zealand consumers to $\_\_\_\_$ their imports from the United States. According to purchasing power parity $($PPP$),$ this will result in a$($n$)\_\_\_\_$ of the New Zealand dollar $($NZ$$).$

Question $5$ options:

$$reduce; increase; depreciation

$$increase; reduce; depreciation

$$reduce; increase; appreciation

$$reduce; increase; appreciation