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Quickly with neat explanation When domestic currency deposits and foreign currency deposits are imperfect substitutes, the right-hand side of the interest parity condition equation (1)

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When domestic currency deposits and foreign currency deposits are imperfect substitutes, the right-hand side of the interest parity condition equation (1) is added a term (p) that measures the risk premium on the domestic currency deposits. (2) is added a term (p) that measures the risk premium on the foreign currency deposits. (3) is subtracted a term (p) that measures the risk premium on the foreign currency deposits. (4) is multiplied by a term (p) that measures the risk premium on the foreign currency deposits

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