Imagine there are only two trading nations in the world. For each of the following scenarios, determine whether goods in one country will become more attractive relative to goods in the other country, given their inflation rates and changes in the exchange rates. a. Ination is 8 percent in the UK and 4 percent in Germany, but the UK pound-euro exchange rate remains the same. Instructions: You may select more than one answer. Click the box with a check mark for correct answers, and click to empty the box for the wrong answers. German goods will become relatively cheaper in the UK. German goods will become relatively more expensive in the UK. British goods will become relatively more expensive in Germany. British goods will become relatively less expensive in Germany. b. Ination is 3 percent in Canada and 7 percent in Japan, but the exchange rate for Canadian dollars to Japanese yen increases from 70 to 80 Japanese yen. Instructions: You may select more than one answer. Click the box with a check mark for correct answers, and click to empty the box for the wrong answers. The nominal cost of goods made in Japan will become more costly compared to the Canada. The Japanese currency will become more expensive. The Japanese currency will become cheaper. Japanese goods will become relatively cheaper compared to Canadian goods. Japanese goods will become relatively more expensive compared to Canadian goods. The nominal cost of goods made in Japan will become less costly compared to the Canada.