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Please note that the interest rate in the question is 2.15% and not 2.25%. 3. Suppose the following were true: (1) Does interest rate parity

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Please note that the interest rate in the question is 2.15% and not 2.25%.

3. Suppose the following were true: (1) Does interest rate parity hold? Why?(5\%) (2) Which way will funds flow? Why? (5\%) (3) How will this affect exchange rates? (5\%)

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