Question: Using the uncovered interest parity equation, what would happen to the spot rate for euros, E(S/euro), if the nominal interest rate in the Eurozone area

Using the uncovered interest parity equation, what would happen to the spot rate for euros, E(S/euro), if the nominal interest rate in the Eurozone area rises, other thing being equal? Select one: a. The spot rate to purchase euros would rise (dollar depreciation against euros). b. The spot rate to purchase euros would fall (dollar appreciation against euros). c. The spot rate to purchase euros would be unchanged. d. The Reserve Bank of Australia would have to raise the Australian interest rates. Report question issue

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