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Assume that relative to today, Dollar is expected to depreciate against the Euro by 10% in real terms over the next period. Assume further that
Assume that relative to today, Dollar is expected to depreciate against the Euro by 10% in real terms over the next period. Assume further that the expected rates of inflation (over the next period) is 10% and 5% in Australia and Europe, respectively. If the real interest rate in Europe r= 5%, choose the correct option: A. r$= -5% B. r$= 10% C. The above information is not enough to calculater$ D. r$= 20% E. r$= 15%
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