The Figure Given Below Depicts the Foreign Exchange Market for British

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-If a dollar invested in the United States yields the same return as a dollar's worth of yen invested in Japan, then it implies that:

A) purchasing power parity exists.
B) the foreign exchange market is in equilibrium.
C) the dollar/yen exchange rate is fixed.
D) interest rate parity exists.
E) both the currencies are pegged to a fixed amount of gold.