Under the monetary approach to the exchange rate,
A.
an interest rate decrease is associated with higher expected inflation and a currency that will be weaker on all future dates.
B.
an interest rate increase is associated with higher expected deflation and a currency that will be weaker on all future dates.
C.
an interest rate increase is associated with higher expected inflation and a currency that will be strengthened on all future dates.
D.
an interest rate increase is associated with higher expected deflation and a currency that will be strengthened on all future dates.
E.
an interest rate increase is associated with higher expected inflation and a currency that will be weaker on all future dates.