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Interest parity occurs when: a) The expected rate of change in the exchange rate equals the difference in interest rates between countries b) The actual

Interest parity occurs when:

a) The expected rate of change in the exchange rate equals the difference in interest rates between countries b) The actual future exchange rate is equal to the expected future exchange rate c) The differences between nominal interest rates among countries are offset by differences in national inflation rates d) The nominal interest rates of two or more countries are equal e) Both A and C are correct

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