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Assume the domestic country has a lower interest rate than a foreign country. Which of these statements is correct? Select all that apply. Multiple select
Assume the domestic country has a lower interest rate than a foreign country. Which of these statements is correct? Select all that apply. Multiple select question. Domestic funds can be borrowed and invested in the foreign country at a profit in the absence of interest rate parity. Interest rate parity cannot exist due to the difference in the interest rates. The spot rate and the forward rate will differ provided that interest rate parity exists. The foreign currency will indicate a weakening in the absence of interest rate parity
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