The Lower the Exchange Rate Today, Ceteris Paribus, the

Multiple Choice

The lower the exchange rate today, ceteris paribus, the

A) greater is the expected profit from buying U.S. dollars today and holding them.
B) smaller is the expected profit from buying U.S. dollars today and holding them.
C) greater is the expected profit from buying foreign currency today and holding it.
D) smaller the quantity of U.S. dollars demanded in the foreign exchange market today.