If the Nominal Interest Rate Parity Condition Is NOT Met

question 1

Multiple Choice

If the nominal interest rate parity condition is NOT met

• A) imports will exceed exports.
• B) the return from holding domestic assets must exceed the expected return from holding foreign assets.
• C) the return from holding domestic assets must be less than the expected return from holding foreign assets.
• D) the return from holding domestic assets must be greater or less than the expected return from holding foreign assets.

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