Which One of the Following Statements Is the MOST Accurate

Multiple Choice

Which one of the following statements is the MOST accurate?

A) For a fixed interest rate, a rise in the expected future exchange rate causes a rise in the current exchange rate.
B) For a fixed interest rate, a rise in the expected future exchange rate causes a fall in the current exchange rate.
C) For a fixed interest rate, a rise in the expected future exchange rate does not cause a change in the current exchange rate.
D) For a given dollar interest rate and a constant expected exchange rate, a rise in the interest rate of the euro causes the dollar to depreciate.
E) For a fixed interest rate, a fall in the expected future exchange rate causes a rise in the current exchange rate.