The Principle Involved in Short-Run Uncovered Interest Parity Is That

Multiple Choice

The principle involved in short-run uncovered interest parity is that home interest rates will be equal to:

A) the world equilibrium real rate of interest.
B) the foreign interest rate minus foreign inflation.
C) the foreign rate of interest plus the expected rate of depreciation of the home currency.
D) the domestic nominal rate of interest plus domestic inflation.