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These questions refer to Purchasing Power Parity. According to Interest Rate Parity, how would the dollar respond (appreciate, depreciate, no change) against the Euro in

These questions refer to Purchasing Power Parity.

According to Interest Rate Parity, how would the dollar respond (appreciate, depreciate, no change) against the Euro in reaction to an average European inflation rate of 2%? The US inflation rate is 4.4% in this examplethe term in question is 1 year. (5 Points)

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