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Assuming covered interest parity holds, a(n)______ in the domestic interest rate will ______ the forward rate, all other things held constant. a. increase, decrease b.

Assuming covered interest parity holds, a(n)______ in the domestic interest rate will ______ the forward rate, all other things held constant.

a. increase, decrease

b. decrease, have no effect on

c. decrease, decrease

d. increase, increase

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