The country of Quinland has large capital flows with the United States. It has no trade with the United States and will not have trade with the United States in the future. Its

interest rate is $6$ percent, the same as the U$.$S$.$ interest rate. You expect that the inflation rate in Quinland will be $9$ percent this coming year, while the U$.$S$.$ inflation rate will

be $1$ percent. You expect that Quinland's interest rate will be $10$ percent during the next year, while the U$.$S$.$ interest rate will fall to $2$ percent during the next year. Quinland's

currency adjusts in response to market forces. Will Quinland's currency appreciate, depreciate, or remain unchanged against the dollar?

Quinland's currency should

against the dollar because money should flow to the country where

$-$Select$-$

rates are expected to be higher this coming

year.