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If the interest rate in Mexico is 5% and the interest rate in Brazil is 2% and the Brazilian real is expected to appreciate by

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If the interest rate in Mexico is 5% and the interest rate in Brazil is 2% and the Brazilian real is expected to appreciate by 2.5% against the Mexican peso over the next year, then: investors would sell pesos in the spot market. investors would buy reals. investors would seek to invest in Mexico. investors would seek to invest in Brazil

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