Suppose That One-Year Treasury Bills Yield 6 Percent in the United

Multiple Choice

Suppose that one-year Treasury bills yield 6 percent in the United States and 4 percent in Britain. Investors will be indifferent between them if they expect the dollar to

A) depreciate against the pound by approximately 2 percent.
B) appreciate against the pound by approximately 2 percent.
C) depreciate against the pound by approximately 33 percent.
D) appreciate against the pound by approximately 33 percent.