A.
an interest rate rise is associated with lower expected deflation and a long-run currency appreciation, so the currency appreciates immediately.
B.
an interest rate rise is associated with higher expected inflation and a long-run currency appreciation, so the currency appreciates immediately.
C.
an interest rate rise is associated with lower expected inflation and a long-run currency depreciation, so the currency appreciates immediately.
D.
an interest rate rise is associated with lower expected inflation and a long-run currency depreciation, so the currency depreciates immediately.
E.
an interest rate rise is associated with lower expected inflation and a long-run currency appreciation, so the currency appreciates immediately.