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According to covered IRP, if i$ > i, A. We should borrow to invest in the US B. We should borrow $ to invest in
According to covered IRP, if i$ > i,
A. | We should borrow to invest in the US | |
B. | We should borrow $ to invest in the UK | |
C. | An arbitrage equilibrium exists | |
D. | An arbitrage opportunity may or may not exist | |
E. | Both B and C |
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