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If the Nominal Interest Rate Parity Condition Is Not Met

Question 94

Multiple Choice

If the nominal interest rate parity condition is not met,


A) imports will exceed exports.
B) the return from holding domestic assets must exceed the expected return from holding foreign assets.
C) the return from holding domestic assets must be less than the expected return from holding foreign assets.
D) the return from holding domestic assets must be greater or less than the expected return from holding foreign assets.

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