lower U.S. QUESTION 2 Assume that the U.S. inflation rate is higher than the New Zealand inflation rate. This will cause U.S. consumers to their imports from New Zealand and New Zealand consumers to their imports from the United States. According to purchasing power parity (PPP), this will result in a(n)--of the New Zealand dollar (NZS). increase; appreciation Ob. increase; reduce; appreciation increase; depreciation QUESTION 3 that the on pounds is 5 percent and the pound is expected to depreciate by 1.5 percemt. For the international Fisher effect (IFE) to hold between the United Kingdom and the United States, the U.S. interest rate should be Oa. 3.5 percent O c. 343 percent O d. 3.68 percent QUESTION 4 rate in the United States is 3 percent while the inflation rate in Japan is 10 percent. The current exchange rate for the Japanese yen () is $0.0075. After supply and demand for the Japanese yen have adjusted in the manner suggested by purchasing power parity, the new rate for the yen will be? Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ans