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Assume that the United States invests heavily in government and corporate securities of New Zealand. In addition, residents of New Zealand invest heavily in the

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Assume that the United States invests heavily in government and corporate securities of New Zealand. In addition, residents of New Zealand invest heavily in the United States. Approximately $10 trillion on worth of investment transactions occur between these two countries each year. The total dollar value of trade transactions per year is about $18 trillion. Then directly influences their exchange rate the most. ___ O income differentials only inflation differentials only inflation and income differentials interest rate differentials inflation and interest rate differentials

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