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    Exam 15: The Foreign Exchange Market
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    According to the Interest Parity Condition,if the Domestic Interest Rate
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According to the Interest Parity Condition,if the Domestic Interest Rate

Question 77

Question 77

True/False

According to the interest parity condition,if the domestic interest rate is 12 percent and the foreign interest rate is 10 percent,then the expected appreciation of the foreign currency must be 2 percent.

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