Which of the following narratives describe Fisher (Irving) effect?A. Nominal interest rate is equal to a real interest rate plus an expected inflation rateB. Real interest rate is equal to nominal interest rate minus expected rate of inflationC. Exchange rate differential between two currencies is explained by interest - inflation rate differentialD. Exchange rate differential between two currencies is explained by comparative cost advantage and purchasing power parityChoose the most appropriate answer from the options given below:

• A. A, B and C only
• B. A and B only
• C. C and D only
• D. B, C and D only