Question
Q. In a flexible exchange rate regime, an exogenous increase in the expected future exchange rate will cause A) the UIP curve to shift to
Q. In a flexible exchange rate regime, an exogenous increase in the expected future exchange rate will cause
A) the UIP curve to shift to the left/up.
B) the UIP curve to shift to the right/down.
C) a movement along the UIP curve.
D) neither a shift nor movement along the UIP curve.
why is the answer B? I thought it would be C
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Contemporary Advertising
Authors: William F Arens
16th Edition
1260735419, 9781260735413
