Multiple Choice
If U.S.nominal interest rate is lower than U.K.interest rate (assuming real interest rate stays same between the countries) ,you can say that:
A) US$ is expected to depreciate.
B) US$ is expected to appreciate.
C) PPP is violated but RPPP may be satisfied.
D) RPPP is violated.
Correct Answer:
Verified
Correct Answer:
Verified
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