Results Displayed only, no pint Show all steps and calculations. Submitted Answers, Feedback Question 1 8 out of 16 points Chose of one choices. Assume that U.S. inflation rates fall relative to British inflation rates holding all other factors constant. 1) As U.S. export will [1], the supply of GBP will [2], and the demand for USD will [3]. 2) As U.S. import will [4), the supply of USD will [5), and the demand for GBP will [6]. 3) Therefore, USD will [7] relative to GBP and GBP will [8] relative to USD. Selected Answer: Chose of one choices. Assume that U.S. Inflation rates fall relative to British inflation rates holding all other factors constant. 1) As U.S. export will increase, the supply of GBP will increase, and the demand for USD will decrease. 2) As U.S. import will increase the supply of USD will decrease, and the demand for GBP will decrease. 3) Therefore. USD will depreciate relative to GBP and GBP will appreciate relative to USD. Question 2 9 out of 9 points Agency costs are normally higher for MNCs than for purely domestic firms. Describe 3 reasons out of 4 we studied. 1) 2) 3) Selected Answer: 1. Monitoring managers of distant subsidiaries is foreign countries is more difficult 2. Foreign subsidiary managers raised in different cultures may not follow uniform goals. 3. Foreign subsidiary managers maximize values of subsidiaries. Response Feedback: [None Given] O out of 24 points Question 3 Baylor Bank believes the New Zealand dollar (NZD) will anereciate over the next one year from USD0.50/NZD to USDO.80/NZD. The following annual interest rates apply