According to the Interest Parity Condition,the Domestic Interest Rate Is

question 67

Multiple Choice

According to the interest parity condition,the domestic interest rate is equal to the foreign interest rate

• A) plus the expected appreciation of the domestic currency.
• B) less the expected appreciation of the domestic currency.
• C) less the expected depreciation of the domestic currency.
• D) less the expected depreciation of the domestic currency weighted by the domestic interest rate.