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Given that home expected inflation rate exceeds foreign expected inflation, P. Power Parity implies: a. foreign currency is expected to depreciate b. home currency is

Given that home expected inflation rate exceeds foreign expected inflation, P. Power Parity implies:

a.

foreign currency is expected to depreciate

b.

home currency is selling at a forward premium

c.

home currency is expected to depreciate

d.

interest rates in both countries will be the same

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