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    Exam 14: Exchange Rates in the Short Run
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    The Interest Parity Condition Indicates That the Interest Differential Is
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The Interest Parity Condition Indicates That the Interest Differential Is

Question 45

Question 45

Multiple Choice

The interest parity condition indicates that the interest differential is equal to the


A) risk premium.
B) forward premium.
C) futures premium.
D) arbitrage premium.

Correct Answer:

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