a. A country that grows faster than its major trading partners can expect the international value

a
Verified Answer
One would agree to the provided statement. Depreciation means when a currency loses its value in terms of another currency. When the growth of a country is higher than other countries, the real incomes in the country also increase causing the people to demand more of the foreign-produced goods. Consequently, the imports of the country rise which in turn causes the demand for the foreign currency to rise much more than the supply of the same in the foreign exchange market. The relatively higher demand than supply causes the domestic currency of the country experiencing growth to depreciate.

b
Verified Answer
One would agree to the provided statement. A currency appreciates when its value increases relative to the other foreign currencies. An increase in the interest rates of a country makes it preferable for foreign people to invest there so as to earn higher returns. Higher interest rates attract foreign investments which in turn increases the supply of foreign currencies much more than their demand. Increased supply of foreign currency causes the value of the domestic currency of the country with higher interest rates to appreciate.

c
Verified Answer
One would agree with the statement. Appreciation means when the value of a currency increases in terms of another currency. If the level of inflation is lower in the home country as compared to other countries, it means that prices of goods and services of goods in home countries would be lower relative to other countries. Therefore, exports made by the home country to other countries increase due to lower prices. Owing to increased exports, the supply of foreign currency will increase. Additionally, lower domestic prices would cause a fall in the imports of the home country owing to which the demand for the foreign currencies declines as well. Increased supply and decreased demand for foreign currencies thus cause the domestic currency of the home country to appreciate.