se the Supply and Demand Model to model exchange rates in the short run between the US dollar and the British pound. What happens to the xchange rate for the US dollar when it is expected to have appreciation in the next few months?

Multiple Choice

C$.$ The exchange rate for the US dollar remains the same.

B$.$ The exchange rate for the US dollar increases $($currency value increases$).$

A$.$ The exchange rate for the US dollar decreases $($currency value decreases$).$

D$.$ The exchange rate is not impacted.