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Roar Roar
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7 years ago
Assume that the interest parity condition holds and that both the expected exchange rate and foreign interest rate are constant. Given this information, a reduction in the domestic interest rate will cause
A) a reduction in the exchange rate expected in the future.
B) a reduction in the current exchange rate.
C) greater depreciation of the domestic currency expected in the future.
D) all of the above
E) none of the above
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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legendvpnlegendvpn
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7 years ago
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Roar Author
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7 years ago
This helped my grade so much Perfect
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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This site is awesome
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