Consider two investment options for a home investor. If the domestic rate of return (home nominal interest rate) is 5%,

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Consider two investment options for a home investor. If the
domestic rate of return (home nominal interest rate) is 5%, and the
foreign nominal interest rate is 3%, and there is no change in
expected future exchange rates, then as the spot exchange rate
increases (i.e., E_home/Foreign gets bigger):
A) the foreign return rises
B) the foreign return falls
C) the home return falls
D) the home return rises