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    International Economics
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    Exam 14: Exchange Rates and the Foreign Exchange Market: an Asset Approach
  5. Question
    Discuss the Effects of a Rise in the Interest Rate
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Discuss the Effects of a Rise in the Interest Rate

Question 24

Question 24

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Discuss the effects of a rise in the interest rate paid by euro deposits on the exchange rate.

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There are two effects to consider. If we...

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