b. Suppose that interest rates in the US relative to rates in Europe. i. What is the predicted effect on the demand for US savings instruments? What explains this prediction? ii. What is the predicted effect on the demand for the US dollar? What explains this prediction? iii. Is the US dollar expected to appreciate or depreciate? Show the result in the diagram below. c. Fill in the blanks: \"Monetary policy that increases interest rates is predicted to put pressure on a currency to \"Monetary policy that decreases interest rates is predicted to put pressure on a currency to \