Suppose there is an increase in Swedish interest rates relative to South African interest rates. Which of the following would then occur? Select one:

a. The exchange rate would not be affected and neither would Swedish prices.

b. The South African rand would depreciate relative to the Swedish krona and Swedish prices decrease.

c. The South African rand would depreciate relative to the Swedish krona and Swedish prices increase.

d. The South African rand would appreciate relative to the Swedish krona and Swedish prices would increase.