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1) If the interest rates are.07 and .05 in Argentina and Canada respectively, what will happen to the peso versus the Canadian dollar, if presently

1) If the interest rates are.07 and .05 in Argentina and Canada respectively, what will

happen to the peso versus the Canadian dollar, if presently they exchange as 10 pesos for

one dollar?

2) Explain the concept of IFE with the aforementioned problem.

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