If the current euro interest rate ( R ) is highe r than the Canadian interest rate

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If the current euro interest rate (R) is higher than the Canadian interest rate (R >R_$= 0.03) is the expected exchange rate (E^e_$/), or the value of the dollar/euro exchange rate expected to prevail in a year's time, higher or lower than 1.67?How do you know? Give an economic explanation.

Posted Date: Jun 13, 2024 10:13 AM

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If the current euro interest rate ( R ) is highe r than the Canadian interest rate

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