Question: If the Fed announces that it will decrease the U.S. interest rates, and European Central Bank takes no action, then the value of euro will

If the Fed announces that it will decrease the U.S. interest rates, and European Central Bank takes no action, then the value of euro will ____ against the value of U.S. dollar (holding other factors constant)

Group of answer choices

be unchanged

depreciate

appreciate

depreciate but only briefly

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