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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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