Question: If the Fed unexpectedly announces that it will decrease U.S. interest rates while the European Central Bank does not change rates, and other factors remain

If the Fed unexpectedly announces that it will decrease U.S. interest rates while the European Central Bank does not change rates, and other factors remain unchanged, then the value of the euro will:

A. It is uncertain without knowing the S/C forward rate

B. It is uncertain without know the past rates of each country

C. Likely strengthen

D. Likely weaken

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