Question $10$

Assume that income levels in the United Kingdom start to rise, while U$.$S$.$ income levels remain unchanged. This will place

pressure on the value of the British pound. Also, assume that U$.$S$.$ interest rates rise, while British interest rates remain unchanged

and that no inflation is expected in either country. This will place

pressure on the value of the British pound.

downward; downward

upward; downward

upward; upward

downward; upward