Multiple Choice
Suppose that the 12-month interest rates for the United States and the United Kingdom are 7% and 6% respectively,and E = 2.10 $/£. Given this information,what is the expected exchange rate change over the year?
A) 1%
B) 4.2%
C) 2.1%
D) 2.0%
Correct Answer:
Verified
Correct Answer:
Verified
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