A.A rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
B.A rise in the interest rate offered by dollar deposits causes the dollar to depreciate.
C.A rise in the interest rate offered by dollar deposits does not affect the U.S. dollar.
D.For a given euro interest rate and constant expected exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
E.None of the above.
Answer: D
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