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According to the Interest Rate Parity ( IRP ) theory, if a country's interest rate is higher than that of another country, its currency should:

According to the Interest Rate Parity

(

IRP

)

theory, if a country's interest rate is higher than that of another country, its currency should:

.

Appreciate in the forward market.

.

Depreciate in the forward market.

.

Remain unchanged.

.

Be more volatile.

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