The International Fisher Effect Suggests That

The international Fisher effect suggests that:

A) the effective yield on short-term foreign securities should, on average, equal the yield on short-term domestic securities.
B) the effective yield on short-term securities of high inflation countries is greater than the yield on short-term domestic securities.
C) if domestic income grows faster than foreign income, the effective yield on short-term foreign securities is higher than short-term domestic securities.
D) if foreign tax rates equal domestic tax rates, the exchange rates of different currencies will change by the same degree.