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    Globle International Economics
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    Exam 16: Price Levels and the Exchange Rate in the Long Run
  5. Question
    Is a Depreciation of the Dollar/euro Exchange Rate Correlated with a Decrease
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Is a Depreciation of the Dollar/euro Exchange Rate Correlated with a Decrease

Question 63

Question 63

Essay

Is a depreciation of the dollar/euro exchange rate correlated with a decrease in the dollar return on U.S. deposits?

Correct Answer:

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No.
Assume that the Interest Parity is m...

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