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Everything else held constant, if interest rates in the US would increase by 1% while the interest rate in UK would increase by 3%, then:

Everything else held constant, if interest rates in the US would increase by 1% while the interest rate in UK would increase by 3%, then:

A) Dollar would appreciate against Pound

B) Supply of pounds would increase in the FX Market.

C) Demand of pounds would descrease in the FX market.

D) Pound would appreciate against Dollar.

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