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The expectations theory of exchange implies that A. on average, the forward rate equals the future spot rate. B. the forward rate is determined by

The expectations theory of exchange implies that

A. on average, the forward rate equals the future spot rate.

B. the forward rate is determined by expectations of future spot interest rates.

C. the forward rate is determined by the central bank's expectations.

D. the forward rate usually equals the future spot rate of exchange.

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