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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
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b. | home currency is selling at a forward premium
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c. | home currency is expected to depreciate
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d. | interest rates in both countries will be the same
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