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Which of the following is true ? The PPP (purchasing power parity) suggests that the inflation rate differential reflects the expected change in the exchange

Which of the following is true?

The PPP (purchasing power parity) suggests that the inflation rate differential reflects the expected change in the exchange rate. The FEP (forward expectation parity) suggests that the nominal interest rate differential reflects the expected change in the exchange rate. The IRP (interest rate parity) suggests that the nominal interest rate differential reflects the expected change in the exchange rate. The IFE (international fisher effect) states that any forward premium or discount is equal to the change in the exchange rate. None of the above.

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