Assume Two Countries,A and B Have the Following Fisher Equations,where

question 16

Multiple Choice

Assume two countries,A and B have the following Fisher equations,where i is nominal interest rate,r is real interest rate,and π is the expected rate of inflation:
i_A = r_A + π_A
i_B = r_B + π_B
Spot and forward rates are expressed as currency A per currency B.When the covered interest parity holds and r_A = r_B, then

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