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the following is a graphical representation of the IFE line: % change in foreign currency's spot rate he dashed line is the IFE line. Which
the following is a graphical representation of the IFE line: % change in foreign currency's spot rate he dashed line is the IFE line. Which of the following is not true (assume that there are no market imperfections)? a. Any point lying on the IFE indicates that the international Fisher effect holds. b. Any point lying to the left of the IFE line represents opportunities for home country investors to earn higher returns than those available domestically. c. (Any point lying to the left of the IFE line represents opportunities for home country investors to earn higher returns than those available domestically.] and [Any point lying to the right of the PPP line indicates that returns from foreign investments will be lower than those from those available at home.] are not true. d. All of these choices are true. e. Any point lying to the right of the PPP line indicates that returns from foreign investments will be lower than those from those available at home
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