Multiple Choice
Assume that the interest parity condition holds.Also assume that the U.S.interest rate is 6% while the U.K.interest rate is 8%.Given this information,financial markets expect the pound to
A) depreciate by 14%.
B) depreciate by 2%.
C) appreciate by 2%.
D) appreciate by 6%.
E) appreciate by 14%.
Correct Answer:
Verified
Correct Answer:
Verified
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