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Under a Fixed Exchange Rate System,if the Nominal Interest Parity

Question 91

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Under a fixed exchange rate system,if the nominal interest parity condition holds,


A) the nominal interest rates in domestic and foreign economies must be the same.
B) the inflation rates in domestic and foreign economy must be the same.
C) the real exchange rates in domestic and foreign economies must be the same.
D) the net exports in domestic and foreign economies must be the same.

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