You open up the Wall Street Journal and notice the federal funds rate in the United States is 5.25 percent,while in the United Kingdom,the current bank rate is 5.75 percent.From this,you conclude:
A) the dollar will depreciate against the pound.
B) the pound will appreciate against the dollar.
C) the dollar will appreciate against the pound.
D) there will be no movement in the exchange rate.
E) a and b
Correct Answer:
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A) 
Q26: In the long run,the nominal exchange rate:
A)is
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Q29: If the real exchange rate is greater
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A)The
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