The Condition Stating That the Expected Percentage Change in the Exchange

question 42

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

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