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Suppose a shift as in graph C occurs, what will happen to the Foreign currency? E(H/F) E(H/F) ERR(H) ERR(H) A B E E ERR(F) ERR(F)

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Suppose a shift as in graph C occurs, what will happen to the Foreign currency? E(H/F) E(H/F) ERR(H) ERR(H) A B E E ERR(F) ERR(F) ERR ERR E(H/F) E(H/F) ERR(H) ERR(H) C D ERR(F) ERR(F) ERR ERR It will appreciate. It will depreciate. It will neither appreciate nor depreciate. It will both appreciate and depreciate

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