If the U.S.and the U.K.have identical term structures of interest rates,we would expect:

Name: If the U.S.and the U.K.have identical term structures of interest rates,we would expect:
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If the U.S. and the U.K. have identical term structures of interest rates, there would be no difference in the return on investment between the two countries. As a result, there would be no incentive for investors to buy one currency over the other, leading to no change in the exchange rate between the two currencies.

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