Expected interest-rate parity predicts that:
A) countries with relatively higher inflation can expect a depreciation in the value of their currency
B) countries with relatively lower inflation can expect a depreciation in the value of their currency
C) countries with relatively higher interest rates can expect an appreciation in the value of their currency
D) countries with relatively higher interest rates can expect a depreciation in the value of their currency
E) countries with relatively higher inflation can expect an appreciation in the value of their currency.
Correct Answer:
Verified
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