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(UIRP)The 6-month interest rates for euro and dollar are i =4% and i $ =2% respectively. According to the uncovered interest rate parity equation, Euro

(UIRP)The 6-month interest rates for euro and dollar are i=4% and i_$=2% respectively. According to the uncovered interest rate parity equation, Euro is expected to________ against U.S. dollar.

a) Depreciate

b) Appreciate

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