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Consider a two-country open economy, consisting of United Kingdom (home country) and the United States (foreign country) and answer the following questions: If the interest

Consider a two-country open economy, consisting of United Kingdom (home country) and the United States (foreign country) and answer the following questions:

If the interest rate on UK bonds is =4% and the interest rate on US bonds is =2%, discuss the expected exchange rate movements, under which a Carry Trade strategy would be profitable

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