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    International Economics Study Set 3
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    Exam 15: Exchange Rates, Interest Rates, and Interest Parity
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    Differences Between the Term Structure of Interest Rates in Two
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Differences Between the Term Structure of Interest Rates in Two

Question 26

Question 26

Multiple Choice

Differences between the term structure of interest rates in two countries will reflect


A) price levels.
B) GNP differences expected.
C) the absence of covered interest arbitrage.
D) expected exchange rate changes.

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