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Munze Munze
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7 years ago
Assume that the interest parity holds and that the dollar is expected to depreciate against the pound. Given this information, we know that
A) U.S. and U.K. interest rates are equal.
B) the U.S. interest rate exceeds the U.K. interest rate.
C) the U.K. interest rate exceeds the U.S. interest rate.
D) individuals will prefer to hold U.S. bonds because the U.S. interest rate exceeds the U.K. interest rate.
E) none of the above
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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Macroeconomics, 6/E (Blanchard, Johnson)
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legendvpnlegendvpn
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7 years ago
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Munze Author
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7 years ago
Smart ... Thanks!
Harvinder
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
mikey3091
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2 hours ago
Correct Slight Smile TY
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