If the interest rate in the U.S. is is = 5 percent for the next year and interest rate in the U.K. is i = 8 percent for the next year, uncovered IRP suggests that Multiple Choice the pound is expected to depreciate against the dollar by about 3 percent. the pound is expected to appreciate against the dollar by about 3 percent the dollar is expected to depreciate against the pound by about 3 percent. exchange rate will remain unchanged