When monetary authorities have not isolate their domestic money supplies from the foreign exchange transactions, it is known as ______ intervention? a) unsterilized b) sterilized c) foreign market d) subsidize Everything else held constant, if the inflation rate in the US is 2% while the japanese inflation rate is 1% then: a. Merchandise in the US would be cheaper for Japanese consumer. b. Dollar would appreciate against Japanese Yen. c. Demand for japanese Yen in the FX market would increase D. Supply of japanese Yen in the FX market would increase. 3) Everything else held constant, if real interest rate in the US would increase by 1% while the real interest rate in UK would increase by 3% then: A. dollar would appreciate against Pound. b. Supply of British pounds would increase in the FX market. C. Demand for British pounds would decrease in the FX market. D. British pound would appreciate against Dollar.