The recent conflict in the Ukraine has caused a spike in oil prices. As a result, the New Zealand inflation rate has increased to about 7.3 percent, which is significantly higher than the 4.2 percent inflation rate in the oil producing nation Kuwait. This will cause consumers in Kuwait to ____ their imports from New Zealand and New Zealand consumers to ____ their imports from Kuwait. Lets assume that the purchasing power parity holds. This will result in a(n) ____ of the Kuwaiti Dinar.

None of the choices are correct

increase; increase; appreciation

reduce; increase; appreciation

increase; reduce; depreciation

reduce; increase; depreciation