If I_d Is the Domestic Interest Rate, I_f Is the Foreign

Multiple Choice

If i_d is the domestic interest rate, i_f is the foreign interest rate, xa is the expected rate of appreciation of the foreign currency (or the expected rate of depreciation of the home currency) , and financial capital is mobile across countries (and assuming no risk premium) , then equilibrium in international financial asset markets is indicated by the expression

A) xa = (i_d/i_f) .
B) xa = i_d + i_f.
C) i_f = i_d + xa.
D) i_d = i_f + xa