The Condition Stating That the Expected Percentage Change in the Exchange

question 4

Multiple Choice

The condition stating that the expected percentage change in the exchange rate is equal to the difference in interest rates between the countries is called:

• A)the international Fisher effect.
• B)purchasing power parity.
• C)the unbiased forward rates condition.
• D)uncovered interest parity.
• E)interest rate parity.

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