If the Dollar Interest Rate Is 4 Percent, the Euro

Multiple Choice

If the dollar interest rate is 4 percent, the euro interest rate is 6 percent, then

A) an investor should invest only in dollars.
B) an investor should invest only in euros.
C) an investor should be indifferent between dollars and euros.
D) invest only in dollars if the exchange rate is expected to remain constant.
E) invest only in euros if the exchange rate is expected to remain constant.