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Which of the following statements is true? O a. All the statements in this question are true O b. Perfect financial market integration implies that

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Which of the following statements is true? O a. All the statements in this question are true O b. Perfect financial market integration implies that the International Fisher Effect and Relative PPP give identical forecasts of the exchange rate Oc Mathematically, the difference between the exact Fisher Effect equation and the approximate Fisher Effect equation is the cross product term Od. When the expected rate of inflation is low, the exact Fisher Effect and the approximate Fisher effect give virtually the same value for the nominal interest rate

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