The current interest rate on one years Indian rupee deposit is 5 percent and yen () deposit

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The current interest rate on one year’s Indian rupee deposit is 5 percent and yen

(¥) deposit is 12 percent. The current ¥>rupee exchange rate is 2 and after a year, it is expected to exceed 2.4. In this case, which currency would you choose for a higher expected rate of return a year later?

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International Finance: Theory And Policy

ISBN: 9781292065199

10th Edition

Authors: Krugman, Paul R.; Melitz, Marc J.; Obstfeld, Maurice

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Question Posted: Oct 02, 2024 04:00 AM

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The current interest rate on one years Indian rupee deposit is 5 percent and yen () deposit

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International Finance: Theory And Policy

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