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

Question 34

Multiple Choice

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


A) appreciation;4
B) appreciation;2
C) depreciation;2
D) depreciation;4

Correct Answer:

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