Suppose interest rates on 1-year deposits and loans in Switzerland are 1.5% and interest rates on 1-year deposits and loans in Mexico are 6.5%. The International Fisher Effect (same as Uncovered Interest Rate Parity) says that the Mexican peso should _____________________ against the Swiss franc, and that the carry trade on average will be ___________________________.

Group of answer choices

A.appreciate; profitable

B.depreciate; profitable

C.appreciate; unprofitable

D.depreciate; unprofitable