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o . E _ idif _ I'd-Pr 3.(25 A) Please prove the formula. 5 (1H0 (1+Pf) Let id: domestic interest rate. if: foreign interest rate.

o . E _ idif _ I'd-Pr 3.(25 A) Please prove the formula. 5 (1H0 (1+Pf) Let id: domestic interest rate. if: foreign interest rate. Pd and 1%: growth rates of domestic and foreign price levels. F and S present the forward exchange rate and spot rate

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