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According to the Interest Parity Condition,the Domestic Interest Rate Is

Question 67

Multiple Choice

According to the interest parity condition,the domestic interest rate is equal to the foreign interest rate


A) plus the expected appreciation of the domestic currency.
B) less the expected appreciation of the domestic currency.
C) less the expected depreciation of the domestic currency.
D) less the expected depreciation of the domestic currency weighted by the domestic interest rate.

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