1. Suppose we expect the British Central Bank to decrease interest rates.Then using our models of exchange rate determination, we would expect that

Group of answer choices

a. a speculator could make money by purchasing s now and selling them back later.

b. this would cause the expected return on holding denominated assets to increase.

c. a speculator could make money by selling $ now and buying them back later.

d. a US business located in Great Britain that was interested in repatriating its profits (i.e., switching s back to $s) should do it now rather than later.

e.this would cause an increase in the demand for the .

2.Combining the Heckshcer-Ohlin and Stolper-Samuelson theorems implies that

Group of answer choices

a. opening trade raises the real rewards to both the country's factors.

b. opening trade affects factor prices but not output prices.

c. opening trade raises the real reward to the country's scarce factor and lowers the real reward to the country's abundant factor.

d. opening trade affects output prices but not factor prices.

e. opening trade raises the real reward to the country's abundant factor and lowers the real reward to the country's scarce factor.