If the interest rate on a bank deposit in the United States is 3 percent while a similar deposit earns 6 percent in Britain, then we could expect that deposits would flow to
A) Britain if the pound is expected to depreciate more than 3 percent.
B) the United States regardless of exchange rate expectations.
C) the United States if the dollar is expected to appreciate less than 3 percent.
D) Britain if the pound is expected to depreciate less than 3 percent.
E) Britain regardless of exchange rate expectations.
D
Economics