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A.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
A.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?
you need to elaborate on the meaning of interest parity theory, purchasing power parity and international fished effect. Specifically, you need to talk about what those theories state generally, and also what they denote for these particular problems.
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