If Foreign Exchange Traders Expect the Dollar to Depreciate in the Short

Multiple Choice

If foreign exchange traders expect the dollar to depreciate in the short run but the economic fundamentals suggest that it will appreciate:

A) the dollar is likely to depreciate in the short run.
B) the dollar is likely to appreciate in the short run.
C) no change in value of the dollar is likely.
D) the change in the value of the dollar cannot be predicted.