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Econ 333: international economics Suppose that the one-year forward dollar price of a euro is $1.13. Further, assume that the spot exchange rate is $1.32

Econ 333: international economics

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Suppose that the one-year forward dollar price of a euro is $1.13. Further, assume that the spot exchange rate is $1.32 per euro, and that the interest rate on euro deposits is 9 percent. What is the interest rate on dollar deposits that would make interest parity hold? Round to two decimal places. Enter a number like 2% as "2.00" and not "0.02." Note: you may end with a number that doesn't seem "realistic" and that's OK for the purposes of this

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