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Based on interest rate parity, the larger the degree by which the domestic interest rate exceeds foreign interest rate, the: (interchange and change answer) Larger

Based on interest rate parity, the larger the degree by which the domestic interest rate exceeds foreign interest rate, the: (interchange and change answer)

Larger will bae the forward premium of the foreign currency.

Larger will be the forward discount of the foreign currency.

Smaller will be the forward discount of the foreign currency.

Smaller will be the forward premium of the foreign currency.

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