4. Assume that the interest parity condition holds and risk-free, one-year rates of interest in the US and Euro area are -0.5% and 0%, respectively. If the Fed raises the rate of interest in the US to 0.25%, the expected appreciation of the dollar vis--vis the euro during the next 12 months

a) will rise.

b) will decline.

c) may rise, may decline.

d) will remain unchanged.