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17. What is the Interest Rate Parity equation? Why would you expect the IRP equation to be satisfied when investors are risk-neutral? Why wouldn't you

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17. What is the "Interest Rate Parity" equation? Why would you expect the IRP equation to be satisfied when investors are "risk-neutral"? Why wouldn't you expect it to be satisfied when investors are "risk-averse"? In that case, which would be larger in equilibrium: the expected return on "domestic lending" or the expected return on "foreign lending"? Explain

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