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Suppose that the interest rate in the U.S is 4% and the dollar is trading at 1.10 dollars per euro. The dollar is expected to
Suppose that the interest rate in the U.S is 4% and the dollar is trading at 1.10 dollars per euro. The dollar is expected to depreciate to 1.15 dollars per euro. If interest rate parity holds, what is the interest rate in the Eurozone? Enter answer as a percent (without the percent sign).
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