Because of the Rising Level of Debt in the United

Multiple Choice

Because of the rising level of debt in the United States after the 2008 recession,the nominal interest rate is expected to rise in the United States more than in Canada.According to the interest rate parity theorem,

A) the Canadian nominal exchange rate is expected to depreciate.
B) the Canadian nominal exchange rate is expected to appreciate.
C) U) S.inflation is expected to rise slower than Canadian inflation.
D) the rate of return on financial assets is expected to be higher in the United States than in Canada.