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Suppose that initially the interest rates in country A were higher than country B. A decrease in the interest rate difference between country A and

Suppose that initially the interest rates in country A were higher than country B. A decrease in the interest rate difference between country A and B certainly implies that Question 1Answera.Risk premium for country A decreases and risk premium for country B remains constant. b.Risk premium for country A remains constant and risk premium for country B falls. c.Risk premium for both countries decrease by the same amount. d.Risk premium for country A decreases relative to the risk premium for country B

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