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    International Economics Study Set 9
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    Exam 18: Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run
  5. Question
    Under Uncovered Interest Parity, If the Domestic Interest Rate Is
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Under Uncovered Interest Parity, If the Domestic Interest Rate Is

Question 15

Question 15

Multiple Choice

Under uncovered interest parity, if the domestic interest rate is greater than the foreign interest rate, then exchange rates are:


A) expected to rise.
B) expected to stay constant.
C) expected to fall.
D) uncertain.

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