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If a Dollar Invested in the United States Yields the Same

Question 28

Multiple Choice

If a dollar invested in the United States yields the same return as a dollar's worth of yen invested in Japan,then it implies that:


A) purchasing power parity exists.
B) the exchange market is in equilibrium.
C) the dollar/yen exchange rate is fixed.
D) interest rate parity exists.
E) both the currencies are pegged to a fixed amount of gold.

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