An Explanation for the Depreciation of the Dollar Vis-àVis the Euro

Multiple Choice

An explanation for the depreciation of the dollar vis-àvis the euro is that:

A) incomes are higher in the euro area than in the United States.
B) interest rates are higher in the United States than in the euro area.
C) inflation in the United States is higher than in the euro area.
D) there is less risk in the United States than in the euro area.
E) None of the above is correct.