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7) Which of the following statement(s) is/are true when IRP fails to hold? pressure from arbitrageurs should bring exchange rates and interest rates back into

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7) Which of the following statement(s) is/are true when IRP fails to hold? pressure from arbitrageurs should bring exchange rates and interest rates back into line. may fail to hold due to transactions costs. 7 may be due to government-imposed capital controls. a) I only c) III only e) None of the above choices b) II only d) I, II &

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