Traders Operate on the Principle That the ______ the Value

Multiple Choice

Traders operate on the principle that the ______ the value of the nominal exchange rate (E) , the ______ it is to purchase foreign currency, and the _____ its return measured in the domestic currency.

A) higher; more expensive; lower
B) higher; less expensive; higher
C) lower; more expensive; higher
D) higher; more expensive; higher