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

question 81

Multiple Choice

According to the interest parity condition,if the domestic interest rate is ________ the foreign interest rate,then ________.

• A) above; there is expected appreciation of the foreign currency
• B) above; there is expected depreciation of the foreign currency
• C) below; there is expected appreciation of the foreign currency
• D) below; the interest parity condition is violated

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