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Is this correct? With perfect capital mobility, if inflation in the UK is forecasted to be 3% higher than in the US and interest parity
Is this correct?
With perfect capital mobility, if inflation in the UK is forecasted to be 3% higher than in the US and interest parity holds, then: Select one answer: There will be a depreciation of the pound with respect to the dollar, O There will be opportunities for arbitrage. O The UK will become more competitive than the US. None of the aboveStep by Step Solution
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