If the US Experiences Higher Inflation Relative to Australia, Then

If the US experiences higher inflation relative to Australia, then in the foreign exchange market, ceteris paribus, we would expect:

A) the demand for Australian dollars to shift to the left, causing an appreciation of the Australian dollar.
B) the demand for Australian dollars to shift to the left, causing a depreciation of the Australian dollar.
C) the supply of Australian dollars to shift to the right, causing a depreciation of the Australian dollar.
D) the supply of Australian dollars to shift to the left, causing an appreciation of the Australian dollar.