2 Assume that the Australian one-year interest rate is 14%. Also assume that the Australian dollar is

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2 Assume that the Australian one-year interest rate is 14%. Also assume that the Australian dollar is expected to appreciate by 8% over the next year against the British pound. What is the expected effective yield on a one-year deposit in Australia by a UK firm?

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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