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Suppose That the One-Year U

question 49

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Suppose that the one-year U.S.interest rate is 8% and the equivalent one-year India interest rate is 12%.According to covered interest parity,there is:


Definitions:

Correlation Coefficient

A numerical measure that indicates the extent to which two or more variables fluctuate together.

Independent Variable

An independent variable is the condition or factor that is manipulated by a researcher to observe its effects on the dependent variable.

Dependent Variable

The element in a study that is anticipated to vary as a result of adjustments made to the independent variable.

Scatterplot

A type of graph that displays values for typically two variables for a set of data using Cartesian coordinates.

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