Consider the exchange rate between British pounds and U.S. dollars. Assume British inflation rates rise while U.S. inflation rates remain constant. Then (1) The demand for British pounds ______, shifting the demand curve of British pounds to the ______. (2) The supply for British pounds _______, shifting the supply curve of British pounds to the _______. (3) Consequently, the British pounds ______ against U.S. dollars.

decreases; left; increase, right; depreciate increases; left; decreases, right; depreciate increases; right; decreases, left; appreciate decreases; right; increases, left; appreciate