Copy the question in your answer and choose one of two choices. According to the International Fisher Effect, if local interest is higher than foreign country 1) local inflation will be [ high or low ] Explain your answer. 2) import will [ increase or decrease ] and export will [ increase or decrease ] Explain your answer. 3) local currency will [ appreciate or depreciate ] because changes in import will cause: Supply of local currency will [ increase or decrease ] Demand for foreign currency will [ increase or decrease ] and because changes in export will cause: Supply of foreign currency will [ increase or decrease ] Demand for local currency will [ increase or decrease ]