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Question 21 1 points Save Answer if home currency interest rate is 12%, foreign currency interest rate is 9%, inflation rate in home country 8%
Question 21 1 points Save Answer if home currency interest rate is 12%, foreign currency interest rate is 9%, inflation rate in home country 8% and inflation rate in foreign country 5% then the expected change in spot rate using Purchasing Power Parity is: - 2.679 2752% -2.778 2.857% Question 20 1 points Which of the following theories suggests that the percentage change in the spot exchange rate of a currency should be equal to the inflation differential between two countries? purchasing power parity (PPP) interest rate parity (IRP) triangular arbitrage international Fisher effect (IFE)
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