Suppose the price level in Denmark rises by 7%, while the price level in Malaysia remains the same. That is, the inflation rate in Denmark is higher than in Malaysia. Shift the appropriate curve or curves on the following graph to illustrate how this affects the market for Danish kroner. Demand for Kroner Supply of Kroner RINGGIT PER KRONE QUANTITY OF KRONER Demand for Kroner Supply of Kroner Suppose the real interest rates in Malaysia and Denmark are initially the same. Then the real interest rate in Denmark rises, while the real interest rate in Malaysia remains the same. This will cause the supply of kroner to and the demand for kroner to , which causes the Malaysian ringgit to relative to the Danish krone.