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Suppose the U.S. interest rate is 3% and the Norwegian interest rate is 1%. The spot exchange rate, E$/Norway, is equal to 2. What is
Suppose the U.S. interest rate is 3% and the Norwegian interest rate is 1%. The spot exchange rate, E$/Norway, is equal to 2. What is the expected exchange rate a year from now according to uncovered interest rate parity?
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