If in Chicago the interest rate is 5 percent a year and in Vancouver it is 4 percent a year, ________.
A) the quantity of Canadian dollars purchased will increase
B) the Canadian dollar is expected to depreciate
C) interest rate parity does not exist
D) the U.S. dollar is expected to depreciate

Question

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The Answer of If in Chicago the interest rate is 5 percent a year and in Vancouver it is 4 percent a year, ________.
A) the quantity of Canadian dollars purchased will increase
B) the Canadian dollar is expected to depreciate
C) interest rate parity does not exist
D) the U.S. dollar is expected to depreciate

If in Chicago the Interest Rate Is 5 Percent a Year