Question: The interest parity equation E= implies that O B. O A. changes in the expected level of the exchange rate far in the future have

The interest parity equation E= implies that O B. O A. changes in the expected level of the exchange rate far in the future have little effect on the current level of the exchange rate. (1 + 4 ) ... ( 1 + 1 +1) = +n +1 it) (1+ii+n) (1 + i) ... (1 + i +n) O C. any factor that moves the expected future exchange rate, Et+n+1' E. as n gets larger, Et+n+1 has greater effect on moves the current exchange rate, Et. D. changes in the expected level of the exchange rate far in the future have more effect on the current level of the exchange rate

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