If the US Interest Rate Is 4% Per Year and the U

Multiple Choice

If the U.S. interest rate is 4% per year and the U.K. interest rate is 9% per year, which of the following statements is TRUE?

A) The dollar will depreciate 4% in one year.
B) The pound will depreciate 9% in one year.
C) The pound will depreciate 5% in one year.
D) The dollar will appreciate 4% in one year.