Under a Fixed Exchange Rate System,if the Nominal Interest Parity

question 91

Multiple Choice

Under a fixed exchange rate system,if the nominal interest parity condition holds,

• A)the nominal interest rates in domestic and foreign economies must be the same.
• B)the inflation rates in domestic and foreign economy must be the same.
• C)the real exchange rates in domestic and foreign economies must be the same.
• D)the net exports in domestic and foreign economies must be the same.

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