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If Interest rate parity does not hold A. There will be a run on banks. B. Investors will demand to hold more stocks. C. There

If Interest rate parity does not hold

A. There will be a run on banks.

B. Investors will demand to hold more stocks.

C. There will be public calls for Congress to act.

D. There will be arbitrage

E. Financial markets will be in danger of failing.

F. Fraud is occurring.

G. There must be a severe trade deficit.

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