Which of the Following Statements Describes the Interest Parity Condition

question 95

Multiple Choice

Which of the following statements describes the interest parity condition?

• A)In the equilibrium,all the prices must be the same in the international market.
• B)In the equilibrium,the inflation rates must be the same in the international market.
• C)In the long run,the exchange rates must be the same in the international market.
• D)In the equilibrium,the rates of return on assets of comparable risk and liquidity must be the same in the international market.

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