Multiple Choice
Assume that capital is perfectly mobile and substitutable between country A and country B and that country A's currency is expected to rise by 3% against country B's. If the interest rate in country A is 4%, then the interest rate in country B will be
A) 1%.
B) 7%.
C) 4%.
D) 3%.
Correct Answer:
Verified
Correct Answer:
Verified
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