Agents in a small open economy have access to a domestic currency bond which pays a fixed

return 1 +I or a foreign currency bond which pays a fixed return 1 +i. Assume that investment incurs no transactions costs. If agents are risk neutral, or if the central bank in this economy follows a price stability rule, (keeping the CPI constant), then the forward exchange rate will equal the expected future spot exchange rate. True or False? Discuss briefly.