According to the theory of expected interest rate parity, the currency of a high-interest-rate country should appreciate over time because it attracts foreign investment.

Question

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According to the theory of expected interest rate parity, the currency of a high-interest-rate country is expected to depreciate over time, not appreciate, to offset the higher interest returns investors would receive, thus equalizing the returns between countries when adjusted for exchange rate changes.

According to the Theory of Expected Interest Rate Parity, the Currency