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Fill in the blank. Using CIP intuition: 1. If dollar interest rate is 4% higher than Yuan interest rate, then investors expect dollar to appreciate
Fill in the blank.
Using CIP intuition:
1. If dollar interest rate is 4% higher than Yuan interest rate, then investors expect dollar to appreciate ______% relative to Yuan. (answer can be positive or negative)
2. If investors expect euro to appreciate 10% relative to Mexican peso, and interest rate in Europe is 5%, then interest rate in Mexico is ______%.
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