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Uncovered Interest Rate Parity implies that: the currency offering the lower interest tends to depreciate the currency offering the higher interest tends to appreciate the

Uncovered Interest Rate Parity implies that:

the currency offering the lower interest tends to depreciate

the currency offering the higher interest tends to appreciate

the currency offering the higher interest rate tends to depreciate

neither of the currencies is expected to change since it is implicitly assumed that the expected change in the exchange rate is zero

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